Home Daily Commentaries The Loonie and Greenback trade flat this morning with firm expectations about the Fed and BoC decisions tomorrow.

The Loonie and Greenback trade flat this morning with firm expectations about the Fed and BoC decisions tomorrow.

Daily Currency Update

CAD - Canadian DollarTechnically speaking, the USD/CAD pair might continue trading flat as we await the Bank of Canada announcement tomorrow. The expected range for today's trading session has resistance levels at 1.3081, 1.3102, and 1.3111, and key support levels at 1.3032, 1.3011, and 1.2997. According to BNY Mellon, their call for the BoC is for no cut and a straight-down-the-middle assessment of the Canadian economy. The BoC would unequivocally hold the title of the, "...most hawkish major central bank in the world". Given that market expectations are rigid regarding expected outcomes from the Fed in the U.S. and the BoC in Canada tomorrow (the Fed would cut its rate 25 basis points and the BoC would keep its rate at the same level), it would take a major surprise to provoke a large change in the USD/CAD pair. In the short-term, the volatility for the Loonie will continue to be slightly elevated. Still, it is the same for the major currencies one day before the two North American central banks meet, which will also include the Bank of Japan.

Key Movers

In the U.S., the Conference Board's Consumer Confidence measure has declined from an upward-revised score of 126.3 in September to 125.9 in October; however, it came below expectations of 128 points. The British Pound trades flat this morning after Labour leader Jeremy Corbyn changed positions since yesterday, after rejecting Prime Minister Boris Johnson's call for an election on Dec. 12th. The Labour leader is now saying that his party's lawmakers would vote in favour of an election in a new vote in the House of Commons later today. Yesterday, the British pound outperformed the U.S. dollar after Boris Johnson failed again in his bid to trigger an early election, with the House of Commons voting down his motion (the third of its kind). However, Boris Johnson will try again later today to get Parliament to allow a snap vote. Still, this time he needs only a simple majority because he is using an easier legal route by proposing a one-line bill, changing the date set in law for the next election to be on Dec. 12th. The Aussie dollar is the best performer this morning, rising 0.7 percent against the Kiwi dollar, 0.6 percent versus the U.S. dollar, 0.51 percent versus the Loonie, and 0.8 against the yen. The key driver of its performance is more positive news about the U.S. - China trade deal.

Expected Ranges

  • USD/CAD: 1.3032 - 1.3102 ▲
  • EUR/CAD: 1.4486 - 1.4533 ▼
  • GBP/CAD: 1.6804 - 1.6900 ▲
  • AUD/CAD: 0.8938 - 0.8983 ▲
  • NZD/CAD: 0.8286 - 0.8308 ▲