- October 30, 2018
- Posted by: Joey Benedid
- Category: Market News
The dollar index continues to inch higher towards the high seen in August fueled by trade tension rhetoric out of the U.S. aimed at China while global stock indices continue to melt away any gains seen to date in 2018. The DXY peaked at 96.98 and a breach of this are will target the 61.8% Fibonacci level at 97.83. While technical momentum indicators show we are well into overbought territory the global backdrop will be favoured over charting levels.
USD/CAD has paused ahead of its 61.8% retracement level as we await BoC Governor Poloz’s testimony, along with Senior Deputy Governor Wilkins, before the House of Commons Standing Committee on Finance in Ottawa today at 3 PM EST. The market will be gauging whether or not their commentary will be sufficient to point towards a December rate hike. Tomorrow’s GDP will go hand in hand with today’s testimony to give us the impetus for CAD’s next move. Key levels remain 1.3156 & 1.3226 up top while support comes in at 1.3080 & 1.3020.