The Canadian dollar has posted losses in the Thursday session, erasing the losses seen on Wednesday. In North American trade, USD/CAD is trading at 1.3038, down 0.32% on the day. In economic news, U.S employment claims edged lower to 210 thousand, beating the estimate of 215 thousand. The sole Canadian indicator, Corporate Profits, posted a gain of 1.0%. On Friday, Federal Reserve Chair Jerome Powell speaks at the Jackson Hole gathering of central bankers. As well, the U.S releases durable goods reports.
The Federal Reserve released the minutes of its July meeting, at which policymakers maintained the benchmark rate. The minutes noted that the U.S economy remains strong and hinted that the Fed would raise rates in September. However, policymakers added that there plan to continue with gradual rate increases could have to be halted if the global trade war worsened, as the trade war represented a major downside risk to the U.S economy. Fed Chair Jerome Powell will address the Jackson Hole Symposium on Friday, and investors will be listening carefully. Powell is expected to refer to trade tensions, as well as the fact that inflation and wage growth have lagged, despite a booming U.S economy. The minutes have cemented a rate hike in September, with market odds currently at 96%. The likelihood of a December rate hike stands at 57%.
USD/CAD Fundamentals
Thursday (August 23)
- 8:30 Canadian Corporate Profits. Actual 1.0%
- 8:30 US Unemployment Claims. Estimate 215K. Actual 210K
- 9:00 US HPI. Estimate 0.3%
- 9:45 US Flash Manufacturing PMI. Estimate 55.1
- 9:45 US Flash Services PMI. Estimate 55.9
- 10:30 US Natural Gas Storage. Estimate 47B
- Day 1 – Jackson Hole Symposium
Friday (August 24)
- 8:30 US Core Durable Goods Orders. Estimate 0.5%
- 8:30 US Durable Goods Orders. Estimate -0.7%
- 10:00 Federal Reserve Chair Powell Speaks
- Day 2 – Jackson Hole Symposium
*All release times are DST
*Key events are in bold
USD/CAD for Thursday, August 23, 2018
USD/CAD, August 23 at 8:40 DST
Open: 1.2997 High: 1.3049 Low: 1.2992 Close: 1.3038
USD/CAD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.2733 | 12831 | 1.2970 | 1.3067 | 1.3160 | 1.3292 |
USD/CAD posted gains in the Asian session and showed limited movement in European trade
- 1.2970 is a support level
- 1.3067 is the next resistance line
- Current range: 1.2970 to 1.3067
Further levels in both directions:
- Below: 1.2970, 1.2831 and 1.2733
- Above: 1.3067, 1.3160, 1.3292 and 1.3436