The Loonie trades sideways as we await manufacturing sales data.
Monday 18 November, 2019
Daily Currency UpdateCAD - Canadian DollarIt will be a busy week for Canada in terms of economic data. Manufacturing sales for September will be released tomorrow. Still, on Wednesday, inflation numbers will be released along with employment numbers and the cherry on the cake will be Bank of Canada (BoC) Governor Stephen Poloz speaking on Thursday and BoC member Wilkins speaking tomorrow, followed by the release of the latest retail sales figures on Friday. The Loonie continues to trade within the narrow ranges that started last week; however, overall the Loonie versus major currencies such as the U.S. dollar, British Pound, and Euro is beginning to deteriorate, losing significant ground after the BoC unusually adopted an easing bias, signaling that rates may be cut. This BoC new bias comes despite a robust domestic economy and it may be considered as a type of ''coverage'' against a negative global outlook. On top of that, technically speaking, the Loonie looks as though it is forming some bearish technical patterns with the three major currencies mentioned above. For now, due to the absence of economic releases in Canada today, the USD/CAD pair might trade within a narrow range between 1.3219 and 1.3237, but it might also trade within a wider range between 1.3191 and 1.3265.
Key Moversrding the British Pound, it is known that market sentiment moves the currencies in the short-term. In that regard, with the election sentiment favoring Boris Johnson's Conservatives, market participants feel more positive about a likely Brexit end game next year. The GBP/USD pair trades at 1.2960, representing a 0.48 percent increase.The improved mood in the capital markets after China's Vice Premier Liu He and Treasury Secretary Steven Mnuchin held "constructive discussions," has helped cyclical currencies like the Aussie and Kiwi dollar in overnight trading. Each side's main worries for phase one of the agreement seem eased after a phone call that was initiated by the U.S.
- EUR/CAD: 1.4611 - 1.4643 ▲
- GBP/CAD: 1.7107 - 1.7214 ▲
- AUD/CAD: 0.8988 - 0.9018 ▼
- NZD/CAD: 0.8435 - 0.8475 ▼