USD/CAD has dipped below the 1.09 level in Thursday's North American session, as the Canadian dollar has halted its recent slide. The loonie received some much-needed help as Canadian GDP beat the estimate and posted a 0.4% gain in June. South of the border, US Unemployment Claims softened, coming in at 302 thousand.
The Canadian dollar has had a rough week, as USD/CAD climbed above the 1.09 for the first time since mid-June. The loonie has showed some life on Thursday, courtesy of unexpected positive news from Canadian GDP. The key indicator rose 0.4% in June, edging above the estimate of 0.3%. Canadian GDP is released on a monthly, rather than quarterly basis, and this was the indicator's best showing since February.
US Unemployment Claims rose last week, hitting 302 thousand. This was within expectations, as the estimate stood at 303 thousand. We'll get another look at key employment data on Friday, as the US releases Nonfarm Payrolls and the unemployment rate. Earlier in the week, ADP Nonfarm Payrolls softened, and the markets are bracing for a weak reading from the Friday NFP release, which could push the dollar down against its major rivals.
In the US, GDP soared in Q2, posting a gain of 4.0%. This easily beat the estimate of 3.1%. The surge in economic activity was boosted by strong consumer confidence and business activity in Q2. Meanwhile, ADP Nonfarm Payrolls was unable to keep pace. The key employment indicator dropped to 218 thousand, compared to 284 thousand a month earlier. This was well off the estimate of 234 thousand. If the official Nonfarm Payrolls follows suit with a weak reading, the US dollar could give up its recent gains.
USD/CAD July 31 at 15:35 GMT
- USD/CAD 1.0880 H: 1.0930 L: 1.0877
USD/CAD Technicals
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.0678 | 1.0775 | 1.0852 | 1.0961 | 1.1004 | 1.1124 |
- USD/CAD was uneventful in the Asian and European sessions. The pair has dropped below the 1.09 line in North American trading.
- On the upside, 1.0961 has strengthened as the pair trades at lower levels.
- 1.0852 is an immediate support level. 1.0775 is stronger.
- Current range: 1.0852 to 1.0961
Further levels in both directions:
- Below: 1.0852, 1.0775, 1.0678 and 1.0572
- Above: 1.0961, 1.1004 and 1.1124
OANDA's Open Positions Ratio
USD/CAD ratio is pointing to gains in short positions in Thursday trade, reversing the movement we saw a day earlier. This is consistent with the pair's movement, as the Canadian dollar has posted gains. The ratio is almost evenly split between long and short positions, indicative of a lack of trader bias regarding what direction the pair will take.
USD/CAD Fundamentals
- 12:30 Canadian GDP. Estimate 0.3%. Actual 0.5%.
- 11:30 US Challenger Job Cuts. Actual 24.4%.
- 12:30 US Unemployment Claims. Estimate 303K. Actual 302K.
- 12:30 US Employment Cost Index. Estimate 0.5%. Actual 0.7%.
- 13:45 US Chicago PMI. Estimate 63.2 points. Actual 52.6 points.
- 14:30 US Natural Gas Storage. Estimate 92B.
*Key releases are highlighted in bold
*All release times are GMT