Booking Profit on USD/CAD Longs as Building Permits Decline in Canada
Today was characterized by a lack of economic events, with no noteworthy news. The risk-on sentiment that provided volatility yesterday was not sustained today, as markets instead took a more cautious attitude instead. The USD has been benefitting from this, making some decent gains, especially in the US session.
Crude Oil has reversed back down now after a $2.50 surge earlier while Treasury yields recovered, with 10-year yields in the United States remaining above 4%, reducing risk appetite. European stock markets here holding on earlier, but they retreated later, while US indices opened with a bearish gap lower, as US futures slipped 0.5% lower.
So, this has been keeping the USD stable against most major currencies, with USD/CAD also up 0.5% to 1.3415, hitting the take profit target of our buy forex signal in this pair which we opened yesterday. Higher interest rates have aided the US dollar in this latest bullish reversal. However, over the past couple of hours, yields have begun to fall but the USD is keeping the bullish momentum.
Canadian November Building Permit Report
- November building permits -3.9% vs -1.7% expected
- October building permits were +2.3%
This report highlights the ‘constant dollars’, or inflation-adjusted permits. It underscores a major issue for Canada, as the population is growing at 3% per year while actual construction has been progressively reducing for the past five years. That’s a toxic combination.
USD/CAD is breaking out to the upside after pushing above 1.34 earlier. The price is currently advancing above its 50% retracement level at 1.33970. If the buyers mean business, staying above 50% would ensure that the bullish tilt remains intact. Move back below, and traders may become disappointed by the failed break above the high swing region.
USD/CAD Live Chart
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals