USDCAD Consolidates at Three Month Lows Ahead of Fed and Boc Decisions
USDCAD trades 0.03% higher at 1.3055 close to three-month lows as the crude oil prices rallied to monthly highs and as risk appetite return to markets on positive headlines from US-China trade negotiations and positive Brexit developments. On the economic data front, the US S&P/Case-Shiller Home Price Indices (year over year) came in at 2%, below forecasts of 2.1% in August. The Redbook Index (year over year) climbed from previous 4.3% to 4.5% on October 25.
Investors expect that the Bank of Canada will keep interest rates unchanged at 1.75% tomorrow. BoC will posily wait until the Q1 next year before easing. The Bank of Canada in September kept its interest rate unchanged at 1.75% as widely expected by markets. Loonie supported by high crude oil price, Canada’s main export product, and higher interest rates. On the other, hand traders expect that the Fed will proceed with one more cut by 25 basis points.
USDCAD momentum is bearish as the pair trades below all major daily moving averages. On the downside where traders had shifted their attention now, USDCAD first support stands at 1.3041 the daily low, a break below might drive prices down to 1.3015 the low from July 14th. On the upside, immediate resistance stands at 1.3068 the daily high, then at 1.3078 the high from yesterday, while more offers will emerge at 1.3122 the high from October 22.Download our latest quarterly market outlookfor our longer-term trade ideas.
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