Forex Market: USD/CAD daily forecast

During yesterday’s trading session USD/CAD traded within the range of 1.0875-1.0961 and closed at 1.0891.

At 11:35 GMT today USD/CAD was losing 0.04% for the day to trade at 1.0888. The pair touched a daily low at 1.0876 at 8:20 GMT, the weakest since April 10.

Fundamental view

Canada

The number of building permits in the country probably rose 4.3% in March compared to a month ago, according to the median estimate by experts. In February permits issued by the government declined 11.6%. Building permits, as an indicator, provide information regarding demand in Canada’s housing market. A higher than anticipated number would be supportive for the Canadian dollar. Statistics Canada is to release its monthly report at 12:30 GMT.

United States

Non-Farm Productivity in the US probably decreased 1.1% in the first quarter, according to the median estimate by experts. In the previous quarter, non-farm productivity rose by 1.8%.

Labor productivity determines the interaction between real output and labor time, which is needed for their production. It shows changes in the number of goods and services produced per operating hour. Although the calculations associate the production with the working hours of all people engaged in a particular sector, the study does not include the specifics of the production process, capital/equipment or other production factors. The indicator reflects the associated impacts, including technological change, capital equipment, the level of production capacity, energy and materials, organization of production, management skills and characteristics and the efforts of the workforce. It is expressed as a percentage change compared to the previous quarter.

The US Bureau of Labor Statistics is scheduled to release an official report at 12:30 GMT. A higher-than-expected reading would be considered a bullish signal for the greenback.

Technical view

According to Binary Tribune’s daily analysis, in case USD/CAD manages to breach the first resistance level at 1.0942, it will probably continue up to test 1.0995. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1029.

If USD/CAD manages to breach the first key support at 1.0858, it will probably continue to slide and test 1.0823. With this second key support broken, the movement to the downside will probably continue to 1.0771.