Technical Talk:USD/CAD 22-10-2019

USD/CAD trims losses as Canadian TV projects a win for the incumbent government Our preference: short positions below 1.3100 with targets at 1.3065 & 1.3050 in extension.Alternative scenario: above 1.3100 look for further upside with 1.3125 & 1.3145 as targets.

Comment:

USD/CAD is trimming gains on reports calling a victory for Canada’s PM Trudeau. The CAD may come under pressure if Trudeau forms a minority government with NDP’s support. The USD/CAD pair is recovering losses on reports stating that Canadian Prime Minister Trudeau is likely to win the second term.

The currency pair is currently trading at 1.3085, representing marginal losses on the day, having hit a three-month low of 1.3071 earlier today.

Canadian TV, CBC, is suggesting Canadian Prime Minister Justin Trudeau is set to secure a second term, although it is unclear whether he will be able to command an outright majority or will have to rely on other parties to govern.

A minority government supported by the anti-pipeline New Democratic Party (NDP) would be bad news for Canada’s energy sector.
The Canadian Dollar, therefore, may come under pressure if Trudeau ends up forming a minority government with NDP’s support.

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