The Canadian dollar is trading sideways in the Wednesday session. In the North American session, USD/CAD is trading at 1.2835, up 0.09% on the day. On the release front, there are no Canadian events for a second straight day. In the U.S, ADP nonfarm payrolls is expected to jump to 185 thousand. We’ll also get a look at ISM Non-Manufacturing PMI, which is forecast to drop to 58.0 points. On Thursday, the U.S releases unemployment claims.
After months of intense negotiations, Canadian and U.S officials have finally hammered out a trade agreement on Monday, which paves the way for a new trade agreement between Canada, Mexico and the United States. The NAFTA agreement, which was a pillar of the Canadian economy for 24 years, will give way to the USMCA – the U.S-Mexico-Canada Agreement. Under the new pact, Canada’s auto sector will be shielded from U.S tariffs, and in return, U.S farmers will have more access to Canada’s highly protected dairy industry. The historic agreement has boosted the Canadian dollar, and the currency continues to impress, having gained 2.4% since mid-September against the greenback.
USD/CAD Fundamentals
Wednesday (October 3)
- 8:15 ADP Nonfarm Employment Change. Estimate 185K
- 9:45 US Final Services PMI. Estimate 52.9
- 10:00 US ISM Nonfarm Manufacturing PMI. Estimate 58.0
- 10:30 US Crude Oil Inventories. Estimate 1.1M
- 14:00 US FOMC Member Lael Brainard Speaks
- 14:15 US FOMC Member Loretta Mester Speaks
- 16:00 US Fed Chair Powell Speaks
Thursday (October 4)
- 8:30 US Unemployment Claims. Estimate 214K
*All release times are DST
*Key events are in bold
USD/CAD for Wednesday, October 3, 2018
USD/CAD, October 3 at 8:00 DST
Open: 1.2824 High: 1.2842 Low: 1.2807 Close: 1.2835
USD/CAD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.2649 | 12733 | 1.2831 | 1.2970 | 1.3067 | 1.3198 |
USD/CAD was flat for most of the Asian session and has posted small gains in European trade
- 1.2831 is providing weak support
- 1.2970 is the next resistance line
- Current range: 1.2831 to 1.2970
Further levels in both directions:
- Below: 1.2831, 1.2733 and 1.2649
- Above: 1.2970, 1.3067, 1.3198 and 1.3292
