Canadian Dollar Update October 22, 2019 – Canadian Dollar ignores election results
USD/CAD Open: 1.3087-1.3088 Overnight Range: 1.3071-1.3122
Oil is at $53.95 and gold is at $1,488.70. US markets are higher today.
The short-term USD/CAD technicals are neutral-bearish. For today, USD resistance is at 1.3132. Support is at 1.3086.
The Canadian dollar traded quietly overnight and ignored the Canadian election results. FX markets, in general, traded in a subdued manner even though there were a few positive signs from the US/China trade war front.
Yesterday, President Trump said that the trade talks were going well and US Trade Representative Robert Lighthizer seemed to echo that sentiment.
Despite the positive tone to the official comments, the FX reaction was underwhelming. AUDUSD and NZDUSD traded higher in Asia but reversed the move during the European session. The Canadian dollar mirrored the antipodean currency movements and gave back its overnight gains in early Toronto trading, this morning.
The Canadian election did not have an immediate impact on the Canadian dollar, but the long-term effect may be harmful. Prime Minister Trudeau managed a victory, of sorts. He will lead another government, but his Liberal Party did not win a majority. He will need to work closely with the NDP and or the Bloc Quebecois if he wants to avoid a snap election.
The US dollar opened in Toronto on a mixed note, with small gains by the commodity bloc currencies. Those gains disappeared. The greenback is a tad firmer across the board, mostly due to profit-taking. There were not any notable economic reports, and the ongoing UK Brexit drama has sidelined traders.
EURUSD traded narrowly but with a bearish bias. News that the European Union demanded “clarification” from France and Italy over their proposed budgets didn’t help sentiment.
Traders are looking ahead to this morning’s release of the Bank of Canada Business Outlook Survey and Canadian Retail Sales data.
Today’s Suggested Range USD/CAD: 1.3040 – 1.3140
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