Loonieviews Oct.29


LOONIEVIEWS

USDCAD Open 1.0432-36 Overnight Range 1.0428-1.043

Original post on Saxo Bank Trading Floor

The Canadian dollar edged higher as did JPY while EURUSD, GBPUSD and AUDUSD all moved lower. The RBA governor was warning that the AUDUSD was too high and in front of the FOMC tomorrow, encouraged a lightening of long positions. Position adjustment ahead of the FOMC seemed to be the theme for Europe as well.

There is a lot of US data to provide a distraction today including Sept. PPI (1.2%), ex-food and energy, yoy), Retail Sales (Oct. 0.1%, mom) and conference Board consumer confidence (75.0 vs 79.7 in Sept.)

Today, Stephen Poloz, Governor of Bank of Canada, testifies before the House of Commons standing committee on finance. Although likely overshadowed by the FOMC meeting tomorrow, this speech can have a negative impact on the Canadian dollar if he continues with the dovish tone from the BOC interest rate statement.

The short term USDCAD technicals neutral within the tight 1.0430-50 range. The bias is slightly bearish looking for 1.0430 to give way to 1.0415 and perhaps 1.0370. A move above 1.0470 puts 1.0510 into play.

Today’s Range 1.0420-50

Categories FX, Foreign Exchange, Currency, Canadian Dollar

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