USDCAD Analysis
| Performance after Thursday | |||||
| Period | Pct | Chg | Momentum | ||
| Thursday | 0.31% | 42.7 Pips |  |
||
| Week to-date | 0.11% | 14.9 Pips |  |
||
| October | 1.99% | 268.9 Pips | |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
In the United States, there are several positive economic developments to note. The Monthly Retail Trade excluding Automobiles showed an increase to 0.5% in September, compared to 0.1% in August. This improvement suggests a boost in consumer spending when vehicles are not considered. Furthermore, the Manufacturing Business Outlook Survey, as reported by the Philadelphia Fed, reflected a rise in confidence among manufacturers with an increase to 10.3 points in October, up from 1.7 points the previous month. The overall Monthly Retail Trade also saw an uptick, recording a 0.4% increase in September from 0.1% in August, according to the Census Bureau. Lastly, the labor market showed signs of strength with Initial Unemployment Insurance Claims dropping to 241,000 for the week ending October 12, down from the previous figure of 258,000 as per the Department of Labor.
These positive economic indicators from the United States are likely to influence the USDCAD exchange rate. The improved retail trade numbers and increased manufacturing confidence suggest robust consumer spending and economic activity, which could strengthen the US dollar against other currencies, including the Canadian dollar. Moreover, the decline in unemployment claims indicates a healthier labor market, which is a positive signal for the economy and could further bolster the US dollar. As a result, the recent rise in the USDCAD rate by 0.31% to 1.37961 might reflect these economic conditions, potentially leading to continued strength of the US dollar against the Canadian dollar if these trends persist.
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What can we expect from USDCAD today?
USDCAD on Thursday rose 0.31% to 1.37961. Price is above 9-Day EMA while Stochastic is falling.
Updated daily direction for USDCAD looks bullish as the pair ended higher after Thursday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 1.38175 with break above could target R2 at 1.3839 or figure level area. While towards the downside, we are looking at daily low of 1.37420 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.38012 may suggest continuation after recent positive movement.
For the week to-date, take note that USDCAD is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 1.38767 |
| R2 | 1.3839 |
| R1 | 1.38175 |
| Daily Pivot | 1.37798 |
| S1 | 1.37583 |
| S2 | 1.37206 |
| S3 | 1.36991 |
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