USDCAD reclaims 1.3700 mark as the greenback recovers and the Bank of Canada considers monetary policy. Fresh Housing fell 0.2 percent.

Key Points and Considerations

While the USD returned sharply, USDCAD regained to about 1.3700.

The postponement of Israel’s intended assault – invasion on Gaza has reduced the overall risk-off mindset.

The Bank of Canada is projected to maintain rates of interest at 5 percent.

In the afternoon London period, the pair rebounds from 1.3660 and reclaims the approx-level barrier of 1.3700 marker. The Canadian dollar gets strength as the United States dollar recovers after finding an interest rate at 105.40 area.

Traders stampede for the United States Currency and over time bond rates.  While attention moves to critical American economic information due out during the week. The (DXY) is nearing 106.00. The a ten- US Treasury yield has risen dramatically to 4.86 percent.

S&P500 index contracts gained significantly during the European period. Indicating a substantial rebound in market players’ willingness to take risks. The postponement of Israel’s proposed ground invasion on Gaza has reduced the overall risk-off mindset.

Markets are looking forward to Fed Chair Powell’s address on Wed. Mr. Powell is likely to stress the importance of keeping the rate of interest high for a greater period of time in order to maintain steady prices. Should America’s economy remain strong, it is anticipated to retain the chances of additional tighter policy viable.

From the CAD face, the spotlight is going to be on the (BoC) rate of interest announcement.  That is planned for Wed. The Bank of Canada is anticipated to leave interest rates constant at 5 percent, amid the Canada’s economy struggles to find a solid foundation amidst a bleak demand forecast.

In September, the Canada Fresh Housing Prices Index (M-M) fell 0.2 percent.

The latest housing price indicator (M-M) across the nation fell 0.2 percent in the month of September.  Falling short of the 0.1 percent increase projected by investors. The Canadian Fresh Home Prices index (M-M) increased 0.1 percent in Aug.

KEY SUPPORT AND RESISTANCE

S3 = 1.30915 S2 = 1.3377 S1 = 1.34161 R1 = 1.37849 R2 = 1.37849 R3 = 1.37849

Last modified: October 24, 2023