Morning Commentary & Currency Insights – October 31, 2018

Yesterday’s BoC testimony reiterated, nearly verbatim, the Bank’s reasoning for last week’s rate hike as we traded within a tight range ahead of this morning’s Canadian GDP release.   Consensus expectations are for a flat reading month over month which would put the year over year number at +2.4%. If this data fails to excite we will take our lead from general market temperament which currently has European stock indices in positive territory and U.S. stocks expected to open in a similar fashion.  Barring poor GDP numbers the path of least resistance in the current environment today would see CAD strengthen towards 1.3055-85.  Topside resistance remains between 1.3160-1.3200.