CAD: Traders mark time ahead of BoC decision – Scotiabank

The Canadian Dollar (CAD) is little changed again on the session so far. PM Trudeau promises more spending to help lift economic growth in the fall economic update, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

CAD little changed

“Markets have been comfortable holding the CAD in a tight range above 1.40 since the start of the week and that may spill over into next week, ahead of the Bank of Canada decision on the 11th. Swaps are pricing in a little more risk of an aggressive rate cut (41bps) next week which will keep the CAD tone defensive.”

“PM Trudeau promised more spending to help lift economic growth in the fall economic update, although there are no indications from the government when the statement will be delivered.”

“Spot ranges are compressing but weakening trend momentum suggests more sideways range trading in the short run between support at 1.4030 and resistance at 1.4090/00.”