OctaFX | OctaFX Forex Broker
Open trading account
Back

USD/CAD: how low can it go, 1.24's? - Scotiabank

Analysts at Scotiabank explained that the Loonie is up modestly vs. the USD, outperforming all of the G10 currencies and building on Friday’s impressive 1.7% rally, its largest one day gain since March 2016. 

Key Quotes:

"Domestic rate expectations have firmed in the aftermath of Friday’s stronger-than-expected employment data with a continued rise in wages and a fresh multi-year (near-decade) low in the unemployment rate."

"OIS are now pricing roughly 12bpts of BoC tightening for January and nearly 50bpts by July, and the 2Y U.S.-Canada yield spread has narrowed roughly 8bpts from last Thursday’s multi-month high."

"Near-term domestic risk is limited ahead of Tuesday’s trade and Wednesday’s BoC (hold expected, no MPR or press conference). Risk reversals remain relatively elevated pricing a premium for protection against CAD weakness. We look to modest near-term CAD strength."

"USD/CAD has broken its November low in the mid-1.26 area. We continue to highlight the risk of a double top, implying a decline toward the lower 1.24s. Momentum is modestly bearish and DMI’s have converged. USDCAD is below both its short-term MA’s and is flirting with its 50 day MA (1.2661). Near-term resistance is expected between 1.2720 and 1.2750." 

Nonfarm payrolls expectations? - Nomura

Analysts at Nomura explained that they expect nonfarm payroll employment to increase strongly by 180k in November, reaffirming continued labor market
Read more Previous

Brazil Trade Balance down to 3.546B in November from previous 5.201B

Brazil Trade Balance down to 3.546B in November from previous 5.201B
Read more Next
Start livechat