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USD/CAD trades around 15 pips.........>

DOLLAR-CANADA
DOLLAR-CANADA: USD/CAD trades around 15 pips higher at $1.3020, with CAD falling
afoul of the broader, albeit limited, USD advance overnight, as opposed to the
latest round of trade war headlines.
- Yesterday's stronger than expected Canadian GDP release has added to the
strength of some of the existing calls for a BOC hike in October, with rates
markets pricing in a circa 65% chance of a hike at that particular meeting at
present.
- After a couple of looks below C$1.3000 in recent sessions, it is worth noting
that the pair's descending channel support is now at 1.2976. A further break
below here will open the way for the 1.2856 area to be targeted. Daily momentum
indicators have also given further bearish signals. Any rebounds will likely
encounter initial resistance at 1.3096, which has formed the top end of the
range over the past few trading sessions.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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