Daily Foreign Exchange Update
November 18, 2024
Spot Rates
- USDCAD spot rate: 1.4048- 1.4053 (as at 8:25am PST)
- Asia: 1.4069 to 1.4101
- Europe: 1.4078 To 1.4103
- North America: 1.4043 to 1.4084
Technical Support / Resistance:
- S2 1.3930
- S1 1.4030
- R1 1.4120
- R2 1.4170
Key Economic Data Releases:
- Canadian housing starts: 240.8K exp 239l prev 223.4K
- Canadian portfolio investment flows: $4.14B exp $41.14B prev $12.25B
Important events we're watching next week:
- Nov 18, Canada, Housing starts, portfolio investment flows
- Nov 19, Canada, CPI
- Nov 19, USA, Building permits, housing starts
- Nov 20, USA, Crude oil stocks change
- Nov 21, Canada, New housing price index
- Nov 21, USA, S&P global manufacturing / services PMIs
- Nov 22, Canada, Retail sales
- Nov 22, USA, Michigan consumer sentiment index
Market Spotlight The USD/CAD pair holds into gains near a fresh more than four-year high around 1.4100 during Monday’s European session, but has since then come down to 1.4050 during the North American session. The Loonie pair strives to maintain its winning spell for the seventh trading day on Monday on multiple tailwinds: strength in the USD across the board on likely acceleration in the US inflation due to President-elected Donald Trump’s victory in both houses and weakness in the CAD on increasing Bank of Canada dovish bets. The US Dollar Index, which tracks the Greenback’s value against six major currencies, clings to gains near a fresh yearly high of 107.00. Market sentiment is slightly cautious as investors expect the Fed to follow a more gradual policy-easing approach. S&P 500 futures trade cautiously during European trading hours. On Thursday, Fed Chair Jerome Powell pushed back expectations of aggressive interest rate cuts but affirmed that the policy-easing cycle is intact, with inflation remaining on a sustainable track toward the bank’s target of 2%. "The economy is not sending any signals that we need to be in a hurry to lower rates,” Powell said and added, “The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully." Meanwhile, the CAD remains on the backfoot as trades expect the BoC to cut interest rates again by 50 basis points in the December meeting. For more interest rate cues, investors await the Canadian CPI data for October, which will be published on Tuesday. Statistics Canada is expected to show that month-on-month headline CPI rose by 0.3% after a 0.4% deflation in September. On year, the inflation data is expected to have grown by 1.9%, faster than the former reading of 1.6%.
- Currently, the TSX is up 0.70% and the DJIA is up 0.01%.
- EURCAD is up 0.01% trading between 1.4813 and 1.4890.
- GBPCAD is unchanged trading between 1.7747 and 1.7808.
- JPYCAD is down 0.66% trading between 0.00905 and 0.00914.
- Gold is up 1.99% trading between $2,561 - $2,615USD/oz.
- Silver is up 3.07% trading between $30.25 - $31.27USD/oz.
- Oil (WTI crude) is up 2.92% trading between $66.72 and $69.06.