CAD struggles to make progress against USD
Daily Currency Update
After strongly outperforming the USD on Friday, the Canadian dollar started this week off struggling to keep up the momentum, seeing the USD/CAD pair meet a resistance level of 1.3650. While the CAD is struggling, oil is up 0.8% from Friday’s close at 75.68. This week is a heavy week for Canadian data releases as well with Canadian Gross Domestic Product (GDP) is set to be released on Thursday, employment change and unemployment rates will be released on Friday.Key Movers
The US dollar index (DXY) remained mostly flat this morning, trading at 103.422. The USD began the week on the back foot as markets await this week’s events to determine the next moves of policy rates. Data releases this week are set for consumer confidence tomorrow, preliminary GDP quarter-over-quarter on Wednesday, unemployment claims and Personal Consumption Expenditures (PCE) price index on Thursday, and finally the ISM Manufacturing Purchasing Manager’s Index (PMI) on Friday. US new home sales in October came in at 679,000, lower than the forecasted 724,000.In Eurozone news, the European Central Bank (ECB) president Christine Lagarde spoke. Lagarde noted that Euro activity is expected to remain weak for the rest of the year and the ECB remains determined to ensure inflation returns to the 2% target.
In the UK, the Confederation of British Industry (CBI) Realized Sales data came out much better than expected at -11 versus the forecasted -30. This indicates that more retailers and wholesalers are seeing an increase in sales volume than expected. Overall, however, the sectors’ sales volumes are diminishing.
Expected Ranges
- EUR/CAD: 1.49014 - 1.49564 ▲
- GBP/CAD: 1.71678 - 1.72355 ▲
- AUD/CAD: 0.89658 - 0.90137 ▲
- USD/CAD: 1.36222 - 1.36610 ▲