Yesterday’s trade (in GMT terms) saw USD/CAD within the range of 1.3476-1.3537. The pair closed at 1.3490, inching down 0.05% compared to Wednesdays close. It has been the 183rd drop in the past 389 trading days. The daily high has been a level not seen since November 18th, when a high of 1.3566 was registered. The major pair has trimmed its advance to 0.60% so far during the current month, following a 2.14% surge in October.
At 7:55 GMT today USD/CAD was inching down 0.08% on the day to trade at 1.3479. The pair touched a daily high at 1.3516 during early Asian trade, overshooting the range resistance level (R3), and a daily low at 1.3454 during the early phase of the European trading session.
On Friday USD/CAD trading may be influenced by the following macroeconomic reports as listed below.
Fundamentals
United States
Wholesale Inventories
The value of goods inventories, held at US wholesalers, probably rose at a monthly rate of 0.3% in October, according to market expectations. Inventories grew at a final rate of 0.1% in September, while market consensus pointed to a larger increase. In case wholesale inventories grew at a faster rate than projected in October, this would have a limited-to-moderate bearish effect on the US Dollar. The Census Bureau is to release the official report at 13:30 GMT.
Services PMI by Markit – preliminary reading
Activity in the US sector of services probably increased at the same rate in November as the one reported in the prior month, with the corresponding preliminary Purchasing Managers’ Index coming in at a reading of 54.8, according to the median forecast by experts. The latter has been the highest PMI level since November 2015, when a final 56.1 was reported. According to Markit, in October, the headline index was supported by a robust growth in new work, while the sub-gauge of input price inflation reached a 15-month high.
The PMI is based on data collected from a representative panel of more than 400 private sector companies, which encompasses industries such as transport and communication, financial intermediaries, business and personal services, computing & IT and hotels & restaurants. Values above the key level of 50.0 indicate predominant optimism (expansion in general activity). In case a faster than-expected expansion in services sector activity is reported, this would have a moderate bullish effect on the US dollar, as services contribute to a considerable portion of the US GDP. The preliminary reading by Markit Economics is due out at 14:45 GMT.
Daily, Weekly and Monthly Pivot Levels
By employing the Camarilla calculation method, the daily levels of importance for USD/CAD are presented as follows:
R1 – 1.3496
R2 – 1.3501
R3 (Range Resistance – Sell) – 1.3507
R4 (Long Breakout) – 1.3524
R5 (Breakout Target 1) – 1.3543
R6 (Breakout Target 2) – 1.3551
S1 – 1.3484
S2 – 1.3479
S3 (Range Support – Buy) – 1.3473
S4 (Short Breakout) – 1.3456
S5 (Breakout Target 1) – 1.3437
S6 (Breakout Target 2) – 1.3429
By using the traditional method of calculation, the weekly levels of importance for USD/CAD are presented as follows:
Central Pivot Point – 1.3501
R1 – 1.3601
R2 – 1.3691
R3 – 1.3791
R4 – 1.3892
S1 – 1.3411
S2 – 1.3311
S3 – 1.3221
S4 – 1.3132
In monthly terms, for USD/CAD we have the following pivots:
Central Pivot Point – 1.3283
R1 – 1.3560
R2 – 1.3711
R3 – 1.3988
R4 – 1.4265
S1 – 1.3132
S2 – 1.2855
S3 – 1.2704
S4 – 1.2553
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