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CANADIAN DOLLAR SEES A SLOW BLEED, IVEY PMI MISSES FORECAST

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  • The Canadian Dollar is softly reversing course after meager Monday gains.
  • Canada Ivey PMI missed expectations but is still positive for now.
  • Loonie losses capped by firming Crude Oil bids to start the week.

The Canadian Dollar (CAD) is giving back some of Friday’s gains after kicking off the trading week with a minor downstep into 1.3629 against the US Dollar (USD), and the Loonie heads into a data-light trading week.

Canada Ivey Purchasing Manager Index (PMI) figures missed the mark on Monday, but they still remain in growth territory above 50.0 for the time being.

Daily Digest Market Movers: Canadian Dollar softens, but momentum remains limited

  • Canada Ivey PMI for October (non-seasonally-adjusted) came in at 51.9 compared to 54.2 in September.
  • The seasonally-adjusted October Ivey PMI printed firmer at 53.4, gaining on the previous month’s 53.1 but missing the median market forecast of 54.0.
  • The Canadian Dollar rose to a 12-day high of 1.3629 against the US Dollar to cap off last week’s three-day bull rally.
  • The USD/CAD is seeing a relief pullback, and the CAD saw a knockback into 1.3685.
  • This week’s economic calendar for the CAD has limited data of a significant nature.
  • Tuesday: low-impact Canadian Trade Balance for September, mid-tier speech from the Bank of Canada’s (BoC) Deputy Governor Sharon Kozicki.
  • Wednesday: Canada Building Permits (September).
  • Crude Oil is seeing a minor uptick for Monday, with West Texas Intermediate (WTI) Crude Oil rising from the week’s opening bid of $80.65 to tap $82.00 per barrel.

Technical Analysis: Canadian Dollar sees relief pullback after gaining nearly 2% last week

The Canadian Dollar (CAD) is giving back some of the Loonie’s 2% rally from last week’s high of 1.3899 in the USD/CAD, and the CAD is now giving back some chart space to the Greenback.

The USD/CAD pair is trading back toward 1.3700 after seeing a clean early Monday bounce from the 50-day Simple Moving Average (SMA) currently parked near 1.3630. Near-term support from the 200-day SMA sits near the 1.3500 handle, capping off any extended bull runs in the Loonie.

US Dollar bulls will have eyes on last week’s high that landed just shy of claiming the 1.3900 handle, and a broad-market firming up of USD bidding will see the USD/CAD clawing back chart paper

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