The Loonie is 3-up this week against the dollar, paring some of its losses last week. Yesterday, the USDCAD fell to a low of 1.0595 before closing at 1.0637.
Market participants focused more on the
Fed’s
interest rate decision yesterday. As expected, the Fed decided to keep its interest rate unchanged at 0.25%. It also said that it will hold it as is for an extended period until the economy shows more signs of recovery. The action is bearish for the USD which goes to the benefit of the other higher yielding currencies like the CAD. The 1.0% gain in oil prices also helped buoy the Loonie. Oil settled at $80.36/barrel after yesterday’s trading.
Data on Canada’s building permits and
Ivey PMI will be published today. Building permits, which is expected to rise by 1.4% in September after surging by 7.2% during the month prior, will be released at 1:30 pm GMT. The Ivey PMI, however, is seen to decline to 60.1 in October from 61.7. The account will be made public at 3:00 pm GMT. We could see a mixed CAD trading given these expectations in the upcoming accounts.