USDCAD resumed the upside price action today after strong US services and better manufacturing PMI data for October. Despite the bullish trend slowing down this week, USD/CAD remains supported by moving averages, as shown on the H4 chart and after the 50 pip bounce today, the price is now trading at the highest level since early August.

USD/CAD Chart H4 – The 50 SMA Is Holding As Support

As markets awaited the Bank of Canada (BOC) rate announcement, the USD/CAD surged over 4 cents higher this month, surpassing 1.38. However, the rise has stalled for now. Markets expect another 25 basis point rate cut at the next BOC meeting, following the recent 50 basis point reduction. There is also a 25% chance of another 50 basis point cut. The pair hit a monthly high of 1.3862, and after a spike on strong U.S. service and manufacturing data, it gained an additional 6 pips.

US October flash S&P Global services PMI 55.3 vs 55.0 expected

• The services and manufacturing PMIs from S&P Global

• October flash S&P Global services PMI 55.3 points vs 55.0 points expected
• Final Sept reading was 55.2 points
• Manufacturing PMI 47.8 points vs 47.5points  expected
• September manufacturing was 47.3 points prior
• Composite PMI for October came at 54.3 points vs 54.0 points prior

The U.S. economy remains robust, as shown by positive PMI figures. Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, commented that business activity continued to grow at a strong pace in October, sustaining the economic upturn into the fourth quarter.

The October flash PMI suggests an annualized GDP growth rate of around 2.5%. New orders also hit their highest level in nearly 18 months, signaling growing demand, although the expansion was limited to the services sector, with manufacturing still underperforming.

USD/CAD Live Chart

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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