- November 1, 2018
- Posted by: Joey Benedid
- Category: Market News
Yesterday’s month end USD buying for equity portfolio rebalancing was extreme since the S&P had its largest monthly loss in 2 ½ years causing the DXY to reach new highs for 2018. This has been slowly unwound overnight as overseas players are happy to exit well established USD longs at levels posted on the North American close. The BoE left rates unchanged as anticipated so tomorrow’s U.S. non- farm payrolls are the next item coming into view.
USD/CAD peaked at 1.3170 yesterday and has been driven below 1.3100 this morning as the upper end of our well established 1.2800-1.3200 range attracted sellers. The BoC’s hawkish rhetoric is still in the back of people’s minds as we await Canadian employment due out tomorrow along side U.S. numbers. We are looking for a gain of 12.7K for Canadian jobs and +193K for the U.S.