USDCAD continues higher for fifth day in a row adding 0.12% at 1.3266, at daily highs after US Producer Price Index (MoM) came in at 0.4%, beating forecasts of 0.3% in October, the yearly Producer Price Index came in at 1.1%, also above forecasts of 0.9% in October. The U.S. Initial Jobless Claims came in at 225K above expectations of 215K for November 8. In Canada the New Housing Price Index (MoM) came in at 0.2% above expectations of 0.1% in September.
Crude oil strength today can’t support the loonie.
Bank of Canada (BAC) the previous week kept interest rates unchanged at 1.75% as widely expected by markets. The BAC pointed out that the risks are to the downside with escalating China-US trade tensions, weak business investment and falling crude oil prices. BoC will possibly wait until the Q1 next year before easing. Loonie the last month supported by high crude oil price, Canada’s main export product, and higher interest rates.
USDCAD makes fresh monthly highs today challenging now the next hurdle at 1.3275 the 200-day moving average. USDCAD outlook has turned bullish now and traders focus to the upside, where the next resistance after the 200-day MA, stands at 1.3299 the top from October 11th.
On the downside, USDCAD first support stands at 1.3270 the daily low followed by 1.3206 the 50-day moving average, a break below might drive prices down to 1.3197 the 100-day moving average.More content