The Canadian dollar was down against the results of Tuesday's US rival, retreating from a two-month high 1.3113. USDCAD pair is not only to hold above 1.31, but seriously claim to be movement in the region of 1.32. The pressure on the Canadian dollar strengthened against the backdrop of renewed concerns about Brexit, as well as the weak data on industrial production.
The report, released Tuesday, showed that Canadian manufacturing shipments in October fell 0.7% after falling 0.2% a month earlier. The main source of the monthly decline was the category of transport equipment, on what could affect the strike union United Auto Workers in the US. Nevertheless, the fact remains - published in the recent Canadian economic data more than disappointing. Not surprisingly, on this background, the participants of the market are increasingly returning to the idea of an imminent easing of monetary policy in Canada.
Recall, the Bank of Canada has repeatedly stated that, in discussing the prospects of lowering the key interest rate, takes into account not only the economic impact of trade conflicts, but also statistics. Additional tips on Canadian monetary policy changes can yield prospects present a report on inflation. Data on the dynamics of change in national consumer price index will be released today at 16:30 GMT. Experts predict a weakening of inflationary pressures at the end of last month. If expectations are met, USDCAD pair will continue to restore and consolidate above 1.32.
USDCAD BuyStop 1,3170 TP 1,3350 SL 1,3120
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