Los Angeles, CA -- (SBWire) -- 11/30/2018 --In a recent press release, DeskTrading.com provided insights on the immediate and long-term trading outlooks of the USD/CAD currency pair following the recent economic updates from both the US and Canada. DeskTrading also highlighted the potential impact of the falling oil prices on the CAD, which coupled with softening stance in US/China trade relations could suggest more bullish runs going into the tail end of the year 2018.

DeskTrading notes that USD/CAD currency pair has been trading within an upward trending channel for the last five weeks and this sets it on a scenario where a shift either direction is possible. However, the USD/CAD currency pair is currently on a pullback following an impressive run last two weeks, which was triggered by the non-farm payrolls. As such, the logical view would be that the current pullback continues as more traders continue to take profits on last weeks' rally. Therefore, the bulls were targeting short-term trading opportunities at around 1.3200, while a weekly target was found at around 1.3250.

However, a rebound could be witnessed again soon. Should the current momentum prove too much for the median line to hold, then the bears will be looking for opportunities at around 1.3100 or a weekly target just 50 pips below at 1.3050.

From a fundamental perspective, DeskTrading's analysts see the greenback gaining more points over the Loonie given the recent Jobs numbers that obliterated expectations. Analysts were expecting 191,000 new jobs for October, but the U.S. Labor market created 250,000 new jobs during the Halloween month.

The unemployment rate continued to hold steady at 3.7%, which is the lowest level since 1969 while the average wages increased by 3.1% year-over-year, and 0.2% from the previous month matching analyst expectations. The U.S. wages are growing at the fastest pace since 2009, which supports a continuation of a stronger consumer confidence levels heading into the festive season.

On the other hand, Canada remains optimistic of another interest rate hike before the end of the year, which could happen the same month the U.S. hikes rates to 2.5% (expected in December 2018). Last months hike by the Bank of Canada took Canada's base rate to 1.75%. The U.S. funds rate stands at 2.25% following the most recent hike in September 2018.

The Loonie also relies heavily on oil prices and based on the recent weekly plunge in both the prices of WTI Crude and Brent Crude, the momentum seems to be with the greenback at least for the next few weeks.

For more information, please visit https://www.desktrading.com/insights/desktrading.com-insights-on-trading-usdcad-going-into-the-festive-season/

About DeskTrading
DeskTrading.com is an online platform that is dedicated to helping clients diversify their investment portfolios by utilizing SMAs (Separately Managed Accounts) as a new approach to the FX market. DeskTrading is revolutionizing the landscape of electronic trading by providing personalized SMAs with one dedicated manager assigned to each managed account to ensure every client receives the time and attention they deserve.

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