Bank of Canada Governor Tiff Macklem said the global scale and impact of the coronavirus crisis is much larger than the 2008 financial crisis. Macklem also added that the level of global cooperation was stronger during the 2008 crisis than it is now.
Commenting on central bank policy views, Macklem said that depending on how new problems emerge, monetary policy tools can always be improved. He reiterated that they are not actively discussing negative interest rates, but that they are maintaining a “never say no” stance.
CAD continued to strengthen against the USD as USDCAD fell to its lowest level in October to 1.3218 just after Governor Macklem spoke. The 1.3200 level was the next focus and was breached into the close yesterday. The MA-200 is slightly above 1.3215. The next nearest resistance is in the 1.3241 area, followed by MA-50 above at 1.3308. The RSI-14 is also approaching the oversold level. However, the trend lower has persisted today and the pair have touched 1.3160 today and into the lower half of the H4 down channel. Today’s S1 is 1.3170 and S2 at 1.3147.
CAD labour sector data is scheduled for today (Friday) at 12:30 GMT and market forecasts show the labour sector is expected to improve. It is expected to provide possible high volatility to the USDCAD movement.
Tunku Ishak Al-Irsyad
Market Analyst
HF Educational Office – Malaysia
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