It was reported on November 8th, 2018 that CAD had seen some gains, with the USD/CAD pairing trading at 1.3094 on the day.
Housing in Canada is expected to reach 199 thousand. It was also revealed that the New Housing Price Index was set to increase to 0.1 percent.
Canada’s economy remains positive, with readings from Ivey PMI proving to be optimistic. Numbers showed that there has been an increase in Canada’s economics, which enjoyed a surge of 61.8, an improvement made on the 50.4 seen back in October.
Earlier in the week, it was announced that the Bank of Canada would be looking to increase it rates between 2.5 and 3.5 percent. The current rates sit as 1.75 percent.
This isn’t the first time that the Bank of Canada has increased its rate, as rate increases have been carried out five times during the past 5 months.
This has proved to be popular with investor who have more confidence in CAD as a profitable currency.
Despite the positives being enjoyed, there has been some hindrance for CAD in the guise of soft oil prices.
The price of West Texas Intermediate oil has dropped in value from $72.20 per barrel to $61.17 in a mere three weeks.
Given that US-imposed sanctions on Iran oil, this is impressive. The US advised that there would be penalties for any company that trades with the regime, with waivers being granted to China, South Korea and India. These three countries are Iran’s biggest customers in relation to oil.
Oils prices are also being undermined US crude inventories, with the Energy Information Administration reported on November 07th, 2018 that numbers neared to 5.78 million barrels.
End of Midterms Bring Balance to USD
It’s safe to say that the USD has had to navigate a few storms over the last few months. Initially, USD was becoming fragile due to ongoing trade talks.
The US midterm elections have meant that there has been a great deal of uncertainty, but then end of the election meant that Wall Street enjoyed a 2 percent spike.
The results of the US midterm election resulted in a split decision. Although the Democrats have won back the House of Representatives, the Republicans have kept hold of the Senate.
This is good news because had the Democrats taken control of both houses, there would have been more difficult in the President passing market-friendly reforms.
However, as both parties had fallen into a margin of 0.5 percent, Florida Secretary of State Ken Detzner is keen for a recount to take place. Although the recounts themselves will only take a few days, there a series of legalities that could mean the process takes much longer.