Canadian Dollar Update October 29, 2019 – Canadian Dollar ignored
USD/CAD Open: 1.3055-1.3056 Overnight Range: 1.3042-1.3070
Oil is at $54.98 and gold is at $1,489.00. US markets are mixed today.
The short-term USD/CAD technicals are neutral-bullish. For today, USD resistance is at 1.3094. Support is at 1.3031.
The Canadian dollar was ignored overnight. The rest of the G-10 major currencies didn’t fare much differently due to caution ahead of the Federal Open Market Committee (FOMC) meeting, and Bank of Canada meeting tomorrow. Nevertheless, a speech by Reserve Bank of Australia Governor Philip Lowe and ongoing Brexit issues provided traders with a bit of a distraction.
President Trump gave risk sentiment a boost yesterday, when he said, “We are looking probably to be ahead of schedule to sign a very big portion of the China deal, and we’ll call it phase one but it’s a very big portion.” His comments led to small gains in New Zealand and Canadian dollars and sparked a bit of unwinding of safe-haven trades. The Swiss franc and Japanese yen drifted lower.
Asia traders focused on British politics. UK Members of Parliament voted on Prime Minister Boris Johnson’s motion for an early election. To succeed, Mr. Johnson needed 430 votes (a two third’s majority). He only received 299. GBPUSD dropped to 1.2808 from 1.2860. His fourth attempt may be the winner.
USDJPY continued to consolidate its October gains. Prices bounced inside a 108.84-109.06 range overnight, moving in concert with broad US dollar sentiment and US Treasury yields. A fall in US 1-year Treasury yields to 1.833% from 1.858% knocked USDJPY from the top, but the drop was tiny. Traders are awaiting the Bank of Japan monetary policy meeting on Thursday.
EURUSD continued to see-saw in a narrow 1.1075-1.1101 range. Traders turned bullish with the break above 1.1050 two weeks ago but the lack of sustained gains above 1.1160, tempered their enthusiasm. Broadly weak Eurozone economic data and the dovish European Central Bank (ECB) monetary policy outlook are capping gains. Also, prices are weighed down by concerns that the FOMC may follow a rate cut with guidance suggesting that “mid-cycle” adjustments are finished.
Today’s US economic reports include Consumer Confidence, and Case Shiller Home Price index. The Canadian calendar is empty.
Today’s Suggested Range USD/CAD: 1.3005 – 1.3105
Get Started With Knightsbridge Foreign Exchange
Book Foreign Exchange Rate
By KBFX | October 29, 2019 | Daily Update | 0 comments