Dollar/CAD was on the rise as NAFTA talks did not bear fruit. What’s next? A light calendar keeps the focus on politics. Here are the highlights and an updated technical analysis for USD/CAD. NAFTA talks resumed in Washington and both the US and Canada expressed optimism about reaching a deal. The Bank of Canada left the interest rates unchanged as expected and maintained the hawkish bias. The BOC’s Wilkins said they considered removing the word “gradual” from the statement. A rate hike is projected for October, but it all depends on NAFTA. Canada disappointed with a loss of 51.6K jobs in August, far worse than expected. Moreover, wage growth decelerated to 2.6%. The silver lining came from the composition of job changes: full-time positions were gained. The US report a better-than-expected increase of 201K jobs and wages jumped by 0.4% m/m and 2.9% y/y, supporting the greenback. Elsewhere, the greenback also moved on US-Chinese trade relations. [do action=”autoupdate” tag=”EURUSDUpdate”/]USD/CAD daily chart with support and resistance lines on it. Click to enlarge: Housing Starts: Tuesday, 12:15. Canada’s housing sector has seen quite a few twists and turns as high prices triggered curbs on foreign buying. The number of housing starts dropped to 206K annualized in July. The figure for August could be higher: 218K is projected. Capacity Utilization Rate: Wednesday, 12:30. Canada has a relatively high utilization rate of its capacity, which is easier to measure in the oil and gas industry. It stood at 86.1% in Q1, slightly below expectations but still at a high rate. 86.9% is on the cards now. NHPI: Thursday, The New House Price Index edged up by 0.1% in June after several flat months. Will July see another positive surprise? A repeat of 0.1% is on the cards. *All times are GMT USD/CAD Technical Analysis Dollar/CAD extended its gains, tackling the 1.3100 level (mentioned last week) and hit the 1.3220 area before retreating. Technical lines from top to bottom: 1.3295 held the pair down in mid-July. 1.3220 capped it earlier in the month. 1.3170 served as resistance in mid-August. 1.3100 is a round number that also capped the pair several times in August. Below 1.3000 we find the mid-August trough of 1.2960. 1.2890 is the initial low seen in late August. 1.2820 was a stepping stone on the way up in late May. 1.2730 provided support earlier in May. Lower, 1.2630 held the pair down back in April. I am neutral on USD/CAD Everything depends on NAFTA. It is hard to predict the mood of US President Donald Trump. A deal will send the loonie higher and USD/CAD way down. A total breakup of the talks will send the C$ plunging and USD/CAD shooting higher. It’s quite binary. Our latest podcast is titled Brexit summer blues, trade troubles Follow us on Sticher or iTunes Further reading: EUR/USD forecast – for everything related to the euro. GBP/USD forecast – Pound/dollar predictions USD/JPY forecast – analysis for dollar/yen AUD/USD forecast – projections for the Aussie dollar. Forex weekly forecast – Outlook for the major events of the week. Safe trading! Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Expert score 5 Etoro - Best For Beginner & Experts0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 5 Read Review Open My Free Account Your capital is at risk. Canadian Dollar ForecastMinors share Read Next Forex Weekly Outlook Sep. 10-14 – Double feature Thursday Yohay Elam 3 years Dollar/CAD was on the rise as NAFTA talks did not bear fruit. What's next? A light calendar keeps the focus on politics. Here are the highlights and an updated technical analysis for USD/CAD. NAFTA talks resumed in Washington and both the US and Canada expressed optimism about reaching a deal. The Bank of Canada left the interest rates unchanged as expected and maintained the hawkish bias. The BOC's Wilkins said they considered removing the word "gradual" from the statement. A rate hike is projected for October, but it all depends on NAFTA. 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