USD / CAD continues to test the line 1.04 Thursday. The pair is trading just below this key level in the North American session. In economic news, unemployment claims in the US rose, reaching their highest level since April. Canada continues to have low inflation indicators, such as the index of new home prices rose just 0.1% in September. In the US, Unemployment Claims was a huge disappointment, soaring to its highest level since April. In other news, Janet Yellen has been nominated by President Obama to head the Federal Reserve. In addition, the minutes of the FOMC meeting indicated that most policy makers favor tapering QE before the end of the year.
As expected, President Obama appointed Susan Yellen to head the Federal Reserve. Yellen take over from Bernard Bernanke, who is due to retire next year. Yellen, who is currently vice president of the Fed, became the main candidate after former Treasury Secretary Lawrence Summers withdrew his candidacy. Yellen is considered favorable to the status quo in position and supported Bernanke in three rounds of QE increases. His appointment must be confirmed by the Senate, but it should be widely approved for the new position.
The Federal Reserve policy meeting minutes, a highly anticipated event, was released Wednesday. At the meeting, the Fed surprised markets by opting to stay on course with its bond purchase program, which is taking place at 85 billion $ / month. The minutes said that the decision not to start narrowing was a "close call". This has increased speculation that we could see narrowing before the end of the year. However, the monkey wrench in all this is the financial uncertainty of the judgment and the threat of the debt crisis. In addition, the Fed relies heavily on key releases such as non-farm payrolls, which were hanging off. It is unlikely that we will see any attempt to reduce QE before December at the earliest.
As if Congress does not have its plate full with the budget deficit and to stop a debt ceiling crisis and could trigger a devastating financial crisis. The US has a debt of $ 16700000000000, and the country will run out of funds to pay off debt on October 17 unless Congress authorizes the raising of the debt ceiling. Otherwise, the US could potentially default on its obligations, which could cause chaos in national and international markets. There are a lot of bad blood between Republicans and Democrats on the closure, and this will undoubtedly complicate negotiations on the debt ceiling. There are signs of some progress, the talks between the parties on the possibility of a short-term increase in the debt limit, avoiding a default for now.
USD / CAD for Thursday, October 10, 2013
USD / 10 CAD October at 13:45 GMT
USD / CAD 1 0393 H: 1.0419 L: 1.0392
USD / technical CAD
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.0224 | 1.0282 | 1.0337 | 1.0442 | 1.0502 | 1.0573 |
- USD / CAD has stabilized Thursday trading. The pair broke above the 1.04 line in the European session, but has since edged lower.
- The pair continues to face resistance line at 1.0442. It is followed by resistance to 1.0502. This line has remained intact since the beginning of September.
- USD / CAD is to receive support at 1.0337. This is followed by a support level at 1.0282
- Current range :. 1.0337 to 1.0442
Other levels in both directions
- Below: 1.0337, 1.0224 , 1.0158 and 1.0068
- above 1.0442, 1.0502, 1.0573 and 1.0652
O Open ratio positions ANDA
report USD / CAD almost unchanged in trading Thursday. This is reflected in the current movement of the pair, which continues to remain close to the line 1.04. The report must be composed of a majority of long positions, indicative of a bias to trade to the US dollar higher movement.
USD / CAD remains close to the line 1.04. The rise of the pair was blunted by a low unemployment claims released, so we can see the pair remain close to that level during the day.
USD / CAD Fundamentals
- 12:00 US Secretary of the Treasury Jack Lew Speaks. Lew will testify on the debt limit before the Senate Finance Committee.
- 24:30 US unemployment claims. 307K estimate. actual 374K.
- 24:30 Canadian NHPI. 0.3% estimate. Actual 0.1%.
- 1:45 p.m. US FOMC Member Bullard Speaks James.
- 2:30 p.m. US natural gas storage. 96B estimate.
- 5:01 p.m. US Bond Auction 30.
- 4:45 p.m. US FOMC Member Daniel Tarullo Speaks.
* the major releases are highlighted in bold
* All GMT release time
This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
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