CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

USD CAD extends gains on weak Canadian manufacturing sales pressured crude oil

Article By: ,  Financial Analyst
November 16, 2015 5:34 PM

USD/CAD extended its gains on Monday to hit a new one-and-a-half month high approaching the key 1.3400 resistance level after the Canadian dollar fell further on worse-than-expected manufacturing sales data from Canada.

Manufacturing sales in Canada declined by 1.5% in September following August’s data that was revised lower from a 0.2% decline down to a 0.6% decline. September’s 1.5% drop stood in stark contrast to the previous consensus forecast for a 0.3% increase.

This rather dismal economic data was exacerbated on Monday by crude oil prices that continued to be pressured after plunging for the past week and a half, weighing down the energy-correlated Canadian dollar.

Also contributing to USD/CAD’s bullish extension was a relatively strong US dollar that continues to be supported by market expectations of a December interest rate hike by the US Federal Reserve.

Upcoming events that could help (or hinder) the current bullish outlook for USD/CAD include Tuesday’s CPI inflation readings out of the US, Wednesday’s minutes from the Fed’s October meeting as well as US crude oil inventories, and Friday’s CPI and retail sales data from Canada.

 

From a price perspective, USD/CAD continues to inch up towards its next major target at the noted 1.3400 resistance level, followed by September’s 11-year high of 1.3456. Any further push above that high could then target the 1.3600 resistance level, which would confirm a continuation of the longstanding bullish trend. Tentative downside support on any pullback now resides around the 1.3200 support/resistance level.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024