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Canadian Dollar Participants Wait for Friday's Canadian GDP Figures

CAD - Canadian Dollar

The Canadian economic calendar is light today, but tomorrow will more than makeup for the lull. Tomorrow at 8:30 am we will have Canadian Gross Domestic Product M/M expected at 0.2% and Y/Y we are looking for 1.5%. Canadian Raw Material Price Index and Industrial Product Price will also be released at the same time, but the GDP figures will overshadow these lower tier fundamentals. Even though there has been decoupling from oil prices and the Canadian dollar of late market participants cannot ignore a slight correlation of the pairing. The Canadian dollar strength is coming from broad-based selling after the Fed's dovish tune at its policy meeting last week while oil is climbing on escalating tension between Iran and the United States. Crude oil is trading at 59.33 with resistance seen at 60.00 dollars per barrel, and the USDCAD pair has touched a low of 1.3106 our first support area second support is seen at 1.3072.

Key Movers

With the G20 summit in Japan set to start tomorrow, investors took solace in comments from US Treasury Secretary Steven Mnuchin yesterday when he said that a US-China trade deal is 90% complete. While we have heard this rhetoric before from both sides, investors still see this as a cue, and the USD rallied with USD/JPY picking up ground. There was a general increase in appetite for risk yesterday, and on the currency markets, this saw the New Zealand dollar benefit the most. Despite the new dovish rhetoric from the RBNZ the Kiwi is still surging. Indeed NZD/JPY, which is an indicator of risk appetite, is at 3-week highs.

Expected Ranges

USD/CAD: 1.3106 - 1.3138 ▼

EUR/CAD: 1.4893 - 1.4946 ▼

GBP/CAD: 1.6603 - 1.6708 ▼

AUD/CAD: 0.9161 - 0.9189 ▼

NZD/CAD: 0.8750 - 0.8790 ▲

EUR/USD: 1.1347 - 1.1382 ▲