Daily Currency Update

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Federal Election Day Holds Loonie in Limbo

CAD - Canadian Dollar

Federal Election Day in Canada and no one party looks to take a majority government. Market participants are favoring a minority government led by a Conservative leader Andrew Sheer vs. one led by Prime Minister Justin Trudeau and his Liberals. Canada has had a record amount of votes come in from expats, as the rules for Canadian living out of the country have changed when it comes to counting their votes. The Canadian economic calendar is light today. Retail Sales for August will be reported tomorrow at 8:30 am. The Canadian dollar is finding 1st support against the greenback at 1.3098 with 2nd support at 1.3072 (0.7650) heading into today, while resistance is at 1.3114 and 1.3138.
China’s economy grew by only 6 percent in Q3 of 2019 compared with a year earlier. This represents its slowest pace in over 30 years and has therefore dealt another blow to global growth. The country’s trade war with the U.S., its cool-down on manufacturing investment, and its lagging income growth all took their toll on the world’s second-largest economy. These gloomy numbers follow a warning from the IMF that the World Economy is set to grow 3 percent in 2019, 0.3 percent below its forecast six months ago.

Key Movers

Boris Johnson has sent an unsigned letter to the EU formally requesting for an extension of the Brexit deadline to end of January 2020 after the parliament voted in favor of the Letwin amendment on Saturday. Sterling dropped initially at the open as the market begins to digest the weekend Brexit news. As the pound trades through the European session, pound strength has been seen as an agreement is still being favored for the October 31st deadline. Despite losing the vote on Saturday, Boris Johnson's deal is not entirely defeated as they are set to vote again on it early this week.

Expected Ranges

USD/CAD: 1.3098 - 1.3138 ▼

EUR/CAD: 1.4618 - 1.4663 ▼

GBP/CAD: 1.6912 - 1.7014 ▲

AUD/CAD: 0.8985 - 0.9021 ▲

NZD/CAD: 0.8370 - 0.8412 ▲

EUR/USD: 1.1149 - 1.1162 ▼