Will the CAD Break 1.4000 Against the USD Today? Market Trends Say It’s Close!

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

US Dollar        1.3870-1.4070

Euro                 1.4710-1.4910

Sterling            1.7670-1.7860

WTI Oil (opening level) $67.29

The CAD is opening at 1.3969 ( 0.7158)

Is today the day, the CAD rate goes above 1.4000? Why not! It is just a number and the market is heading that way. Every day the CAD loses a little bit more to the USD and we creep a little higher towards that number.

It probably doesn't stay there for long today, but we will touch it soon enough.

Is it caused by the Trump Bump that the market over all is experiencing? Yes. The USD index is a good indicator of that since it is now above 106. Remember is started the month at 104. So a 2 percent bump in the value of the USD versus the world is about right.

The question is - will it stay there?

Maybe for a week or so, then look for it to come back down, as soon as the true numbers in the USA are released and the shine will slowly come off the USD.

The USD posted new local highs against most major currencies yesterday, likely as US treasury yields marched back higher on the anticipated impact of president-elect Donald Trump’s policies.

EURUSD traded briefly below the significant 1.0600 level and thus the lowest level of the year, while USDJPY rose above 155.00 for the first time since late July, just before the Bank of Japan’s rate hike- which was the first hike in 17 years.

Today is a significant test for this USD surge on the US October CPI release. 

Sterling stumbled badly, likely as UK gilt yields followed US treasury yields higher, aggravating concerns on whether the Labour government’s new heavy spending ambitions are going to far and will spark volatility in the gilt market.