The Loonie Gains As Rail Strike Ends.
Wednesday 27 November, 2019
Daily Currency UpdateCAD - Canadian DollarEconomic data from the Canadian economy is non-existent today market participants await monthly GDP Figures on Friday from Statistics Canada to wager on the Bank of Canada's next rate move. The loonie did strengthen against the greenback on good news for the commodity-based currency after optimism rose for a resolution to the US-China trade war. The loonie got a boost after striking CN railway workers reached a tentative agreement after a week-long strike ended, market participants are factoring out a significant disruption and slowing of the Canadian economy. The Canadian dollar rose to first support of 1.3274 the USDCAD 200 day moving average it has since moved through the support level and eyes next support of 1.3245 (0.7550). Resistance remains at 1.3333 a level which been tested a few times since October after a more dovish stance from the Bank of Canada has been heard.
Key MoversMid-tier data from the US came in worse than expected as CB Consumer Confidence, and the Richmond Manufacturing Index both missed target yesterday.Today sees the second estimate of US GDP, which is expected at 1.9% and came in at 2.1%, helping the greenback hold loses against it counterparts. Markets will be eyeing it closely as readings may influence policymakers at the Fed to ease further.USD/JPY pushed up through 109, and commodity currencies enjoyed a small bounce as China's Ministry of Commerce again hinted at progress being made in phase one of the trade agreement between the US and China. Reuters also quoted Donald Trump as saying they are in the "final throes" of a trade deal.AUD fell vs. all major currencies overnight after Westpac bank predicted that the RBA would cut interest rates twice by June next year before starting quantitative easing.
- USD/CAD: 1.3260 - 1.3333 ▲
- EUR/CAD: 1.4595 - 1.4630 ▲
- GBP/CAD: 1.7023 - 1.7101 ▲
- AUD/CAD: 0.8992 - 09017 ▲
- NZD/CAD: 0.8518 - 08543 ▼