USDCAD Analysis
| Performance after Wednesday | |||||
| Period | Pct | Chg | Momentum | ||
| Wednesday | 0.43% | 59.4 Pips |  |
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| Week to-date | 0.16% | 22.3 Pips |  |
||
| November | 0.04% | 5.9 Pips | |
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Upcoming key events (London Time)
Thu 07:00 PM USD Fed Interest Rate Decision (Federal Funds Rate)
Fri 01:30 PM CAD Labour Force Net Change in Employment
What happened lately
In a significant political development in the United States, Donald Trump has emerged victorious against Kamala Harris in the 2024 presidential race, confirming his position as the 47th president of the country. This outcome could have widespread implications on domestic and international policies, potentially impacting various economic sectors depending on his administration’s agenda. The political landscape under Trump’s leadership might see shifts in trade policies, regulations, and economic strategies that could influence market sentiments and investor confidence.
Meanwhile in Canada, the Ivey Purchasing Managers Index (PMI), a crucial indicator of economic activity, showed a decline. It fell to 52 in October from 53.1 in September, with a parallel non-seasonally adjusted index declining to 52.2 from 54.5. This dip suggests a slowdown in business activity, which may lead to concerns over Canada’s economic momentum and the health of its manufacturing sector. The decline might be attributed to various internal or external factors and reflects the cautious sentiment among purchasing managers over future business conditions.
The foreign exchange market has been attentive to these developments, with USDCAD experiencing a 0.43% increase to 1.39411 on Wednesday. The potential for increased market volatility arises from the political changes in the U.S. and the economic indicators in Canada. Trump’s reelection might lead to speculation of continued or altered economic policies compared to his previous term, which could strengthen the USD. Simultaneously, the weakened PMI figures in Canada reflect bearish prospects, which could apply downward pressure on the CAD. Moreover, upcoming high-impact events such as the U.S. Federal Reserve’s interest rate decision and Canada’s employment change report could further influence the USDCAD pair by shifting investor sentiment dependent on these economic signals.
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What can we expect from USDCAD today?
USDCAD on Wednesday rose 0.43% to 1.39411. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for USDCAD looks bullish as the pair ended higher after Wednesday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 1.3993 with break above could target R2 at 1.40449 or figure level area. While towards the downside, we are looking at daily low of 1.38200 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.39584 may suggest continuation after recent positive movement.
For the week to-date, take note that USDCAD is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 1.41314 |
| R2 | 1.40449 |
| R1 | 1.3993 |
| Daily Pivot | 1.39065 |
| S1 | 1.38546 |
| S2 | 1.37681 |
| S3 | 1.37162 |
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