Daily Currency Update

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The Loonie is in Consolidation Mode

CAD - Canadian Dollar

The Canadian dollar has moved into a narrow consolidated range to end the week in the last few trading days of September. In the overnight, the USD/CAD pair only moved in a 20 pip range. At writing, the pair trades at 1.3242 or 0.7552 US cents for 1 Canadian dollar. Resistance is seen at 1.3263, and a break above the top of the range would put the 1.3301 (200DMA) into play. While support is at 1.3232 (50DMA) and breaking below, this would signal a move towards our psychological trading level of 1.32. Oil prices are the primary catalyst for the Canadian dollar edging lower against the greenback on Wednesday. Oil prices sold off for a consecutive day with the unexpected surge in U.S. Crude Oil Inventories posting 2.4 million barrels. With oil prices moving lower and the U.S. dollar recovering against a basket of major currencies and no economic releases for Canada, the Lonnie is poised to remain well entrenched in the consolidated trading range today.
Headlines across America emblazoned with an impeachment inquiry against President Donald Trump were announced by speaker Nancy Pelosi. The U.S. Dollar Index (DXY) continued its uptrend as the greenback pushed higher against a basket of currencies, topping out at the 99.06 and a retest of two-year highs.
Supported in its movements higher was the release of new home loans in the United States as low mortgage rates stimulate the housing market. An increase of 7 percent in August and to a 12 year high showed sales of single-family homes were showing signs of strong improvements.

Key Movers

Rulings in the U.K. by the Supreme Court have recently rocked the pound as a unanimous vote that the shutdown of parliament for a prolonged period of time by Prime Minister Boris Johnson was illegal. Putting Brexit decisions firmly up in the air again, there now looks to be a push to put pressure on the PM to resign after only eight weeks at the helm. GBP/USD moved from 1.2500 overnight to 1.2350 on open this morning.
A raft of United States data is due for release this evening including final GDP figures for the quarter. Attention then shifts over to Europe where both ECB President Draghi and BOE Governor Carney are scheduled to speak this evening at an annual conference in Frankfurt.

Expected Ranges

USD/CAD: 1.3232 - 1.3269 ▼

EUR/CAD: 1.4473 - 1.4534 ▼

GBP/CAD: 1.6306 - 1.6410 ▼

AUD/CAD: 0.8945 - 0.8978 ▲

NZD/CAD: 0.8314 - 0.8382 ▲

EUR/USD: 1.0922 - 1.0965 ▲