Yesterday’s trade saw USD/CAD within the range of 1.2436-1.2648. The pair closed at 1.2506, losing 1.01% on a daily basis, which followed two consecutive daily gains.
At 9:12 GMT today USD/CAD was up 0.06% for the day to trade at 1.2515. The pair touched a daily high at 1.2522 at 8:19 GMT.
Fundamentals
United States
Reuters/Michigan Consumer Sentiment Index
The monthly survey by Thomson Reuters and the University of Michigan may show that consumer confidence in the United States remained without change in February. The preliminary reading of the corresponding index, which usually comes out two weeks ahead of the final data, probably remained at 98.1 during the current month, matching the final reading from January. This has been the highest index value since January 2004, as current expectations were boosted by stable gains in jobs and wages. The survey encompasses about 500 respondents throughout the country. The index is comprised by two major components, a gauge of current conditions and a gauge of expectations. The current conditions index is based on the answers to two standard questions, while the index of expectations is based on three standard questions. All five questions have an equal weight in determining the value of the overall index.
The sub-index of current economic conditions increased to a final reading of 109.3 from a preliminary 108.3 in January, after a month ago it stood at 104.8. The sub-index of consumer expectations came in at a reading of 91.0, down from a preliminary value of 91.6 in January, but improving from a final 86.4, registered in December.
In case the gauge of consumer sentiment came above projections in February, this would boost demand for the greenback. The preliminary reading is due out at 14:55 GMT.
Canada
Manufacturing Sales
Manufacturing sales in Canada probably increased 1.0% in December compared to November, according to market expectations, following a 1.4% decrease in November and a 1.1% drop in October. In September shipments were up at a monthly rate of 2.2%. The Monthly Survey of Manufacturing features statistical data regarding sales of finished goods, inventories, unfilled orders and new orders in Canadian sector of manufacturing. About 10 500 items and 27 000 companies are encompassed.
Manufacturing sales are considered as an indicator of demand in the future. An increase in the number of goods and unsold inventories suggests, that demand is not sufficient and vice versa. On the other hand, an increase in sales (shipments) speaks of stronger demand. Therefore, in case shipments rose at a faster-than-projected pace, this might have a bullish impact on Canada’s dollar. Statistics Canada will release the manufacturing data at 13:30 GMT.
Pivot Points
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.2530. In case USD/CAD manages to breach the first resistance level at 1.2624, it will probably continue up to test 1.2742. In case the second key resistance is broken, the pair will probably attempt to advance to 1.2836.
If USD/CAD manages to breach the first key support at 1.2412, it will probably continue to slide and test 1.2318. With this second key support broken, the movement to the downside will probably continue to 1.2200.
The mid-Pivot levels for Monday are as follows: M1 – 1.2259, M2 – 1.2365, M3 – 1.2471, M4 – 1.2577, M5 – 1.2683, M6 – 1.2789.
In weekly terms, the central pivot point is at 1.2550. The three key resistance levels are as follows: R1 – 1.2750, R2 – 1.2973, R3 – 1.3173. The three key support levels are: S1 – 1.2327, S2 – 1.2127, S3 – 1.1904.
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