CAD: Budget might give some help to CAD – ING

FXStreet Insights Team FXStreet

It’s worth monitoring Canada’s budget announcement today, ING's FX analyst Francesco Pesole notes.

USD/CAD to hover around 1.40 for most of November

"A mix of fiscally expansionary measures to support a tariff-hit economy are widely expected. The bar for debt sustainability concerns to hit CAD is elevated, so bold fiscal spending moves should be positive for CAD as the risks of more Bank of Canada cuts decrease."

"But the focus should anyway stay on data. If inflation figures undershoot, the case for another cut in early 2026 (our baseline) should be compelling. On Friday, Canada also releases jobs figures for October. All the focus will be on the unemployment rate, where further increases from the current 7.1% should also fuel dovish bets."

"We expect USD/CAD to hover around 1.40 for most of November, then turn lower in December as the USD weakens."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD holds above 1.1800 after Eurozone inflation figures

EUR/USD remains within a tight daily range above 1.1800 on Wednesday after the data from the Eurozone showed that the annual HICP inflation softened to 1.7% in January as expected. Private sector employment and ISM Services PMI data could ramp up the pair's volatility in the second half of the day.

GBP/USD stays bid above 1.3700, awaits top-tier US data

GBP/USD sticks to gains above 1.3700 in European trading on Wednesday. The pair takes advantage of a pause in the US Dollar rally, even as markets turn cautious ahead of the US ADP jobs report and the ISM Services PMI data. The BoE's 'Super Thursday is keenly awaited.

Gold sticks to bullish bias; eyes $5,100 as safe-haven demand persists ahead of US data

Gold advances to a fresh weekly high during the first half of the European session on Wednesday, with bulls now looking to reclaim the $5,100 mark amid a supportive fundamental backdrop. Concerns over rising tensions between the US and Iran resurfaced following overnight reports that the US shot down an Iranian drone in the Arabian Sea.

ADP Employment Report set to show modest hiring extended into January

The Automatic Data Processing Research Institute will release its monthly report on private-sector job creation for January on Wednesday. The so-called ADP Employment Change report is expected to show that the United States economy added 48K new jobs, following the 41K new payrolls witnessed in December.

Should investors abandon AI as software stocks slide?

AI is not being abandoned by markets. It is being priced more carefully. Over the past few weeks, the underperformance of software and SaaS stocks has sparked a familiar question: is the AI trade breaking down? The answer is no.

Solana Price Forecast: SOL drops below $100 as bears tighten grip

Solana (SOL) trades below $100 at press time on Wednesday, after taking a more than 6% hit the previous day as the broader cryptocurrency market slipped. Institutional and retail demand for Solana continues to decline, while on-chain data shows a record 150 million daily transactions on Tuesday.