The Loonie trades flat this morning pending the tight upcoming election results in Canada.
Friday 18 October, 2019
Daily Currency UpdateCAD - Canadian DollarThe Loonie is trading at 0.7612, and the USD/CAD pair is trading within a narrow range of 1.3127 and 1.3247. There are no economic releases in Canada, so the Loonie will be driven by external factors and market participant positioning. However, looking ahead, after the market closes, the Loonie could be impacted by Bank of Canada Deputy Governor Timothy Lane’s speech when the FX market re-opens on Sunday, depending on his tone relating to monetary policy. Canada's tight election apparently won't be a primary driver of the Loonie next week. Technically speaking, the USD/CAD pair has strong support levels at 1.3125, 1.3103, and 1.3095. On the upside (weaker Loonie), it has three key resistances levels: 1.3160, 1.3176, and the 1.3200 handle.
Key MoversIn the U.K., despite the Sterling rallying when Johnson struck his deal, the big event will take place this weekend. Northern Ireland's Democratic Unionist Party is refusing to support a Brexit deal in Brussels, and British Prime Minister Boris Johnson will find out tomorrow if he can gather enough votes to get it through Parliament. Boris Johnson would need to convince his party, counting on some of the rebels he got rid of last month, hardline Brexiters, plus a few Labour lawmakers to back his deal. Everything is expected to happen by 9:30 am EST this Saturday, and because the FX market is closed on the weekends, we expect big swings in the British Pound FX pairs Sunday night EST. A Johnson defeat could unleash a political crisis that may force a general election or even a second referendum. In China, the GDP came in at 6 percent in the three months leading up to September. It was a slower pace than the 6.1 percent expected and the slowest pace since the early 1990s. China’s GDP continues struggling with the trade war and weaker domestic demand. A deceleration in investment was the main driver for the lower-than-expected GDP. Market participants did not sell off the Yuan because they are waiting to learn more about an upcoming meeting of the Communist Party's top leadership for a possible review of economic stimulus measures.
- USD/CAD: 1.3126 - 1.3160 ▲
- EUR/CAD: 1.4616 - 1.4690 ▼
- GBP/CAD: 1.6795 - 1.7000 ▼
- AUD/CAD: 0.8960 - 0.9000 ▼
- NZD/CAD: 0.8362 - 0.8400 ▼