CAD down for an eighth session in a row

The Canadian Dollar (CAD) is a little softer on the session so far but losses are holding near yesterday’s low in the upper 1.37s, Scotiabank’s FX Chief FX Strategist Shaun Osborne notes.

Short-term technical position of USD/CAD looks bullish

“Before Canadian markets can think about packing it in early and heading off for the Thanksgiving weekend, there is the September employment report and the Bank of Canada’s Q3 Business Outlook survey to work through. Q3 growth is sluggish relative to expectations but markets are looking for a 27.5k rise in jobs last month. Wage growth remains sticky but the unemployment rate is expected to nudge up a tenth to 6.7%.

“The BOS will shed light on expected sales trends well as inflation expectations. Jobs data will be the driver for spot and risks here are somewhat asymmetric in terms of the likely market reaction—disappointing data will bolster expectations that the BoC will ease policy more aggressively while on expectations or better data may only temper those bets marginally, if at all. “

“It’s hard to say anything but bullish about the short-term technical position of USD/CAD. The strong run higher in the USD since the start of the month is stretching to eight consecutive sessions now and is bordering on excessive but there are no signs of vulnerability in price action and the bull trend remains firm. Support is 1.3745/50 and 1.3715. Resistance is 1.3800 and 1.3850.”

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.