CAD Faces Strategic Pause Ahead of Rate Decision, USD Strengthens Amid Global Weakness

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.3730-1.3920

Euro                 1.4920-1.5130

Sterling            1.7890-1.8130

WTI Oil (opening level) $70.75

Are we experiencing a strategic pause in anticipation of Wednesday's interest rate announcement from the Bank of Canada? The CAD continues to weaken against the USD, currently trading in the low 1.38 range.

It is interesting to me that we have not been able to break above the 1.3850 level yet. My charts are pointing towards 1.41 in the next couple of months based on the projection / trajectory of the last 15 days. No guarentee that it happens - but it is charting that way. 

Last week we saw weak numbers in regards to manufactuing, metals, petroleum products, machinery, and electrical equipment all falling between 2 to 5%. It is not just the local economy but the international economy as well. That kind of explains the slight rise in the USD index, but I think that is also hitting the same pregnanat pause button until after the election in 2 weeks. As no one wants to rock the boat in the next couple of weeks. So any major moves will be muted in the short term and reevaluated in November, after the election.