The Canadian dollar increased by 0.29 percent on Monday and then devalued on Tuesday. Why was that? Learn why that happened and more with the 8 November USDCAD Fundamental Drivers Analysis from OctaFx.
8 November, OctaFX – The Canadian dollar devalued yesterday with insufficient support from Bank of Canada (BoC) following the speech of its Governor, Stephen Poloz who gave a speech in Montreal. Inflation was the primary issue of Governor Poloz speech where he reemphasized the central bank goal is to control wage growth, economic capacity, and inflation and regulate the interest rate accordingly.
From North America, Canada will issue its latest housing starts and building permits data at 13:15 and 13:30 GMT. Both reports are expected to show a decline in the monthly rate.
Shifting gears to the United States, no major US reports are scheduled for Wednesday. The US Energy Information Administration (EIA) is expected to report on weekly crude inventories at 14:30 GMT. The weekly report is expected to show a drawdown of 2.8 million barrels in the latest period ended 3 November.
8 November USDCAD Fundamental Drivers Analysis
The Canadian dollar lost momentum on Tuesday following sizable gains at the start of the week. The USD/CAD was back to trading well below 1.2800 as markets anticipated upcoming Canadian data. Near-term support is located at 1.2714, which is the low from 6 November.
This article about 8 November USDCAD Fundamental Drivers Analysis should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.
Also, speculative trading is a challenging prospect, even to those with market experience and an understanding of the risks involved.