USDCAD Analysis
| Performance after Thursday | |||||
| Period | Pct | Chg | Momentum | ||
| Thursday | -0.36% | -49.3 Pips |  |
||
| Week to-date | -0.12% | -16.7 Pips |  |
||
| September | 0.53% | 71.9 Pips |  |
||
Upcoming key events (London Time)
No major events for the day.
What happened lately
The U.S. Manufacturing Business Outlook Survey for September recorded a positive shift to 1.7 points, up from -7 points in August according to the Philadelphia Fed. Initial Unemployment Insurance Claims for the week ending 14 September saw a decrease to 219,000 from a revised figure of 231,000 as reported by the Department of Labor. Interest rate projections reflected mixed outcomes: the Federal Reserve reduced its projections for various periods, with the first-year rate dropping to 3.4% from 4.1%, and the second-year rate reduced to 2.9% from 3.1%. However, projections for the longer term slightly rose from 2.8% to 2.9%. The Federal Funds Rate decision was lower than forecast, dropping to 5% compared to the previous 5.5%. August also showed positive movements in the housing market with building permits increasing to 1.475 million from a revised 1.406 million in July, and housing starts rising to 1.356 million from a revised 1.237 million, as per the Census Bureau.
The recent economic news from the United States is likely to affect the USDCAD exchange rate. The improvements in manufacturing outlook, decreased unemployment claims, and heightened activities in building permits and housing starts indicate economic strength, which would typically support the U.S. dollar. However, the lower interest rate projections and the unexpected reduction in the Federal Funds Rate undermine this positive sentiment, possibly leading investors to seek out currencies with higher returns. This interplay of these factors resulted in the USDCAD dropping by 0.36% to 1.35610 on Thursday. As the market adjusts to the newer economic realities and continues to digest the Federal Reserve’s stance, it could contribute to a weaker U.S. dollar against the Canadian dollar in the short-term.
Latest from X (Twitter)
What can we expect from USDCAD today?
USDCAD on Thursday dropped -0.36% to 1.35610. Price is below 9-Day EMA while Stochastic is rising.
Updated daily direction for USDCAD looks bearish as the pair posted lower in Thursday trading session.
Looking ahead for the day, immediate support level is at S1 1.35103 with break below could see further selling pressure towards S2 at 1.34595. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.36472 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 1.35280 would indicate selling pressure.
For the week to-date, take note that USDCAD is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 1.37487 |
| R2 | 1.36979 |
| R1 | 1.36295 |
| Daily Pivot | 1.35787 |
| S1 | 1.35103 |
| S2 | 1.34595 |
| S3 | 1.33911 |
#USDCAD Trending on Twitter
[custom-twitter-feeds hashtag=”#USDCAD” num=3 showheader=false]