The Canadian is slightly lower in the Tuesday session. Currently, the pair is trading at 1.3220, up 0.24% on the day. On the release front, Canada releases . It’s a busy day in the United States. We’ll get a look at construction and manufacturing data, as well as . All eyes will be on Fed Chair Jerome , who will testify before the Senate Banking Committee. On Wednesday, Powell speaks before the House Financial Services Committee.
The will be on center stage this week, as Fed Chair Jerome Powell testifies before congressional committees on Tuesday and Wednesday. The Fed has been decidedly dovish early in 2019, in sharp contrast to 2018, when the Fed raised rates four times in order to keep the red-hot U.S. economy from overheating. However, the global trade war has taken a bite out of global growth, and the U.S. economy is unlikely to repeat last year’s performance. The markets will be listening closely for hints regarding future policy and whether the Fed plans to remain dovish in stance.
Canadian numbers have been mixed, making it difficult for the Bank of Canada to step in and raise for the first time in 2019. Similar to the Federal Reserve, the BoC was aggressive in 2018, but has applied the brakes in 2019. The Bank hiked rates three times last year, but has since stayed on the sidelines, with the benchmark rate pegged at 1.75%. It’s unlikely that the bank will make any rate moves unless the Canadian economy shows clear signs of gathering steam. Consumer spending data in December was a disappointment, with retail sales and core retail sales posting declines.
Tuesday (February 26)
- 8:30 Canadian Corporate Profits
- 8:30 US Building Permits. Estimate 1.29M
- 8:30 US Housing Starts. Estimate 1.25M
- 9:00 US HPI. Estimate 0.3%
- 9:00 US S&P/CS Composite-20 HPI. Estimate 4.5%
- 9:45 Fed Chair Powell Testifies
- 10:00 US CB Consumer Confidence. Estimate 124.8
Wednesday (February 27)
- 8:30 Canadian CPI. Estimate 0.2%
- 10:00 Fed Chair Powell Testifies
*All release times are EST
*Key events are in bold
USD/CAD for Tuesday, February 26, 2019
USD/CAD, February 26 at 7:45 EST
Open: 1.3187 High: 1.3224 Low: 1.3184 Close: 1.3220
USD/CAD was mostly flat in the Asian session and has posted small gains in European trade
- 1.3200 is a weak support level
- 1.3290 is the next resistance line
- Current range: 1.3200 to 1.3290
Further levels in both directions:
- Below: 1.3200, 1.3125, 1.3049 and 1.2969
- Above: 1.3290, 1.3383 and 1.3445
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