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CANADIAN DOLLAR STILL UP FOR THE WEEK BUT STRUGGLES TO HOLD ONTO GAINS ON FRIDAY

Alan xi
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  • The CAD caught a bounce on risk appetite in early Friday trading.
  • Industrial inflation figures in Canada print better than expected.
  • US Dollar, Fed reaction is driving the market today.

The Canadian Dollar (CAD) is looking to pare back some of Thursday’s losses, catching some support from bolstered Crude OIl bids, but downside risks remain.

The Loonie is up about half a percent against the US Dollar (USD) for the week.

Canadian industrial inflation figures went head-to-head with US housing data Friday morning, but overall, risk sentiment appears to be the primary driver of moment-to-moment market moves.

Daily Digest Market Movers: Canadian Dollar unable to develop long legs to round out the week

  • Canada’s Raw Material Price Index for October showed a 2.5% decline after September’s 3.9% jump (revised from 3.5%).
  • Month-on-month Industrial Product Prices into October similarly declined 1%, contracting from the previous 0.4%.
  • US Building Permits and US Housing starts both beat expectations, helping to arrest the Greenback’s early Friday slide and capping off CAD gains.
  • US economy showed 1.487 million new building permits, beating the forecast of 1.45 million and clearing the previous month’s 1.471 million.
  • US monthly Housing Starts also showed improvement, printing at 1.372 million versus the forecast for 1.35 million. September saw ground broken on 1.346 million new residential buildings.
  • Crude Oil is seeing some lift on Friday, bolstered by rumors of additional EU sanctions on Russian Crude Oil exports.
  • A back-and-forth trading week leaves the CAD strung along Friday’s mid-range.
  • The overall trading week was also middling for the Loonie as the USD drove broad-market momentum. 

Technical Analysis: Canadian Dollar strung along the middle for Friday as markets second-guess direction

The Canadian Dollar (CAD) is testing chart territory below 1.3750 against the US Dollar (USD), but the day’s Loonie bids are coming under threat as USD/CAD bidders make a feeble push.

The USD/CAD hit a daily low of 1.3708 before seeing a thin rebound toward 1.3740.

The pair hit a mid-week high near 1.3780 on Thursday, and CAD bidders have been struggling to pare away the bounce from the mid-week low near 1.3660.

Daily candlesticks have the USD/CAD consolidating in rough trading just above the 50-day Simple Moving Average (SMA), and technical indicators are beginning to grind toward the middle


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