Dollar/CAD dropped on the calm in NAFTA negotiations and the relative weakness of the US dollar. Can the Canadian Dollar continue forward? Retail sales and inflation stand out on Friday. Here are the highlights and an updated technical analysis for USD/CAD. Mexico said it is willing to go it alone with the US on a bilateral deal, putting pressure on Canada. NAFTA negotiations continued in slow-motion in Washington. Differences on dairy and arbitration prevail. The US Dollar weakened on no new escalation with China and on weak inflation. Consumer data was already more upbeat. [do action=”autoupdate” tag=”EURUSDUpdate”/]USD/CAD daily chart with support and resistance lines on it. Click to enlarge: Foreign Securities Purchases: Monday, 12:30. The gauge of flows in and out of Canada showed 11.55 billion coming into the nation in June, above expectations. The positive figures will likely continue. Manufacturing Sales: Tuesday, 12:30. Sales at the manufacturing level expanded by 1.1% in June. Despite being a relatively volatile measure, the trend is important and it moves the loonie. ADP Non-Farm Payrolls: Thursday, 12:30. ADP is a large provider of payrolls to the private sector. Their estimate of the job market comes out after the official numbers but still carries some weight. An increase of 11.6K was recorded in July. The government data for August showed a loss of positions but ADP may produce different data. CPI: Friday, 12:30. Inflation has been moving slightly to the upside, with headline CPI jumping by 0.5% and core CPI by 0.2% back in July. Other measures such as the Common, Median, and Trimmed CPI have been circling around 2%. The Bank of Canada intends to raise rates in October, depending on the NAFTA negotiations of course. A stable level of inflation is needed for Poloz and co. to move ahead with a hike. Retail Sales: Friday, 12:30. Retail sales saw a slump in June, with -0.2% on the headline and -0.1% on the core figure. The disappointment came after a strong read for May. The see-saw may continue with an increase in July. The publication competes with the CPI figures. *All times are GMT USD/CAD Technical Analysis Dollar/CAD kicked off the week consolidating under 1.3170 (mentioned last week). It then turned sharply lower, dipping temporarily below 1.3000 before climbing back up. 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. 1.3045 seprated ranges in mid-September and is a pivotal line. 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 Too hot or too cold? The world is watching the Fed 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 AUD/USD Forecast Sep. 17-21 – Has the Aussie bottomed out? Yohay Elam 3 years Dollar/CAD dropped on the calm in NAFTA negotiations and the relative weakness of the US dollar. Can the Canadian Dollar continue forward? Retail sales and inflation stand out on Friday. Here are the highlights and an updated technical analysis for USD/CAD. Mexico said it is willing to go it alone with the US on a bilateral deal, putting pressure on Canada. NAFTA negotiations continued in slow-motion in Washington. Differences on dairy and arbitration prevail. The US Dollar weakened on no new escalation with China and on weak inflation. Consumer data was already more upbeat. 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