USD/CAD: Greenback Holds Steady Against the Canadian Dollar Ahead of Thanksgiving

The US dollar was mostly unchanged to slightly higher against the Canadian dollar in today’s trade following the release of a myriad of market reports ahead of the Thanksgiving break in the US.

US Durable goods orders jumped 0.6% in October, beating market expectations of a 0.5% fall. The US economy grew 2.1% in the third quarter fueled by private consumption, above forecasts of a 1.9% rise. Only the Chicago PMI came in lower than expected in November with a reading of 46.3 vs a 47.2 forecast.

Nevertheless, while the better-than-expected data modestly underpinned the US dollar, market volatility remained quite low ahead of the Thanksgiving break which may also trigger some end-of-month flows today. Most major pairs moved less than 0.1% during the trading day.

The Canadian dollar was quite resilient against the greenback, pushing the USD/CAD pair from an intraday high of 1.3282 to 1.3271, as of 2:50 p.m. London time.

The loonie was supported by slightly higher oil prices, lower December rate cut probabilities (7%), and news that the CN rail strike had been called off yesterday. Nevertheless, markets are still pricing in a 33.5% risk of a rate cut in January, which seems somewhat elevated given the current economic conditions in Canada.

Technicals remain bearish at the moment with a strong resistance forming around the mid-1.33s. The pair is currently finding some support around the 1.3270 level, which aligns with November 14 high and the 50% Fib retracement level.

However, the pressure at the mentioned support is rising, and a break below the 1.3250 level could pave the road to the November 19 low of 1.3190. The November 20 high of 1.3327 continues to act as a short-term resistance.


Currencylive.com is a news site only and not a currency trading platform.
Currencylive.com is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.