USD/CAD Touches 1.38 as WTI Falls to $75

USD/CAD surged above the resistance zone around 1.38 and was trading near the next resistance zone on the daily chart, close to 1.39. The price pierced just above 1.3903 but as crude Oil continued to fall and Canada’s employment data for October was lackluster. But the USD started retreating after the FED meeting last week, and a round of soft economic data from the US.

This pair slipped lower to 1.3630 where it met the 200 SMA (purple) on the H4 chart, which seems to have held as support, since we’ve been seeing a bounce higher this week. The atmosphere changed when traders and analysts believed that the Fed’s rate rises were over and that the next move would be a rate drop next year. The 10-year US Treasury rate decreased, lifting global market indexes, but the situation has shifted this week.

Canadian September 2023 Building Permits

• Canadian Sept 2023 building permits
• October permits were +3.4% (revised to +4.3%)
• Sept permit value $11.2B
• Residential permits +4.3% m/m
• Non-residential -21.0%
• Permits up 3.4% in Q3

There will be a real estate crisis in Canada, and rumors are circulating about the downfall of a famous developer, but there will be a significant lag before development begins. It’s on its way, but it hasn’t arrived yet. The headline in this month’s statistics is that August institutional construction was at an all-time high, with three huge projects totaling $2.1 billion, and that has since peaked.

USD/CAD Live Chart