Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.3900-1.4150
Euro 1.6230-1.6480
Sterling 1.8700-1.8950
WTI Oil (opening level) $57.00
The CAD/USD is opening at 1.4031 ( 0.7127 )
USD/CAD inches higher after registering losses in the previous session, trading around 1.4030.
The technical analysis suggests a bullish reversal as the pair is attempting a rebound within the ascending channel pattern.
USD/CAD pair is positioned above the nine-day Exponential Moving Average (EMA). Additionally, the 14-day Relative Strength Index (RSI) remains above the 60 level, supporting the bullish bias to revive.
On the upside, the successful return to the ascending channel would revive the bullish bias and support the USD/CAD pair to test the six-month high of 1.4079, reached on October 14. A break above this level would support the pair to explore the region around the ascending channel’s upper boundary at 1.4170.
The USD/CAD pair may find its immediate support at the nine-day EMA of 1.4016. A break below this level would weaken the short-term price momentum and put downward pressure on the pair to test the 50-day EMA at 1.3894. Further declines would prompt the pair to navigate the region around the three-month low of 1.3721.
Headlines
· China’s economy expanded at its slowest pace in a year during the third quarter, growing 4.8% from 5.2% in the previous period, highlighting the mounting challenges Beijing faces as it tries to navigate a global trade war while propping up domestic growth. Increasingly, China’s expansion is being driven by exports, which are helping offset a deepening slowdown in domestic demand.
· China’s four-year property slump shows no sign of easing, with home prices falling more sharply in September despite fresh stimulus efforts by major cities to stabilise the market. The prolonged real estate weakness continues to sap confidence and is one of the key factors underpinning gold’s remarkable rally, as investors look for alternative stores of value amid persistent economic uncertainty.
· Japan's LDP and Innovation Party have broadly reached an agreement, setting up Sanae Takaichi to become the country's first female prime minister. There is, however, no guarantee the new coalition will be stable, with some lawmakers expressing concern about the LDP’s ability to pursue its reform agenda.
· Trump urged Zelenskiy to accept Putin’s terms or be destroyed by Russia, the FT reported. The Ukrainian leader told NBC the war should be frozen along current battle lines before peace talks, even as Putin insists on control of Donetsk.
Key Points
· Equities: U.S. eked out gains as bank jitters eased and tariff rhetoric softened. Europe fell on banks and defence. Asia slid into the weekend
· Volatility: VIX retreats ~18%. Regional-bank stress fades. Earnings and CPI in focus
· Digital assets: Bitcoin > USD 111k. ETH +1.9%. Geopolitical tone aids sentiment
· Currencies: USD pulled back stronger Friday, mixed overnight
· Commodities: Precious metals consolidate, so far above key support levels
· Fixed Income: US 10-year treasury yield back above 4.00%, Japan’s yields surge as LDP-led coalition set to form a government this week.