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- The Canadian dollar traded at 1.3312 against the US dollar, as of 2:37 p.m. BST.
- The economic calendar is light for both currencies today.
- Canadian wholesale sales came in at 1.0% in September, beating market expectations of a 1.2% fall.
The US dollar is mostly unchanged to slightly higher against the Canadian dollar on a relatively slow trading session ahead of the Thanksgiving holiday in the US. The loonie failed to pick up support despite higher oil prices and lower rate cut expectations in Canada.
The trading week started on a modest risk-on tone after China announced that they will raise penalties on intellectual property violations — a move welcomed by the United States. Nevertheless, a final phase-one trade deal still seems far away at the moment.
The economic calendar is light for both currencies today. The change in Canadian wholesale sales came in at 1.0% in September, beating market expectations of a 1.2% fall but failing to substantially support the loonie.
Another highlight for the loonie will be the Q3 GDP report, scheduled for Friday, which will likely confirm a significant slowdown from the 3.7% growth recorded in Q2. However, the Bank of Canada has already lowered the GDP forecast in its last Monetary Policy Report, which will likely reduce the impact of this week’s report on the CAD.
Speculative bullish positioning in the Canadian dollar fell sharply by $1.03 billion in the last reporting week, taking the net long positions to $2.17 billion. The US dollar remained well in demand with speculative investors adding $2.7 billion to their overall bullish exposure. Total USD long positions stand at $17 billion now.
Technicals show important resistance levels at the November 20 high of 1.3327, followed by the October highs of 1.3347. To the downside, the US dollar seems well supported around the mid-1.32s, the break of which could see a retest of the November 19 low around the 1.3200 level. As of 2:37 p.m. London time, the Canadian dollar traded at 1.3312 against the US dollar.
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