By FX Empire.com
The USD/CAD pair gained on Monday, as the U.S. dollar strengthened against major currencies after the Bank of Japan intervened in markets to weaken the Yen, which provided the U.S. dollar with strong bullish momentum, while jitters fromEuropecontinued to weigh down on higher yielding assets, which weighed down on the Canadian dollar.
Better than expected growth in Canada as reported earlier on Monday supported demand for the Canadian dollar and pushed the USD/CAD pair to the downside, where Canada’s GDP expanded in August by 0.3% above median estimates, while compared with a year earlier, GDP expanded by 2.4% also above median estimates. Nonetheless, the worse than expected Chicago PMI spread pessimism again in markets, which pushed the U.S. dollar higher against the Canadian dollar.
Traders will be eyeing the FOMC rate decision on Wednesday, where the majority of analysts expect the FOMC to leave the current monetary policy unchanged, while on Tuesday, traders will be following the ISM manufacturing index from theUnited States.
Tuesday November 01:
The United States will start the day at 14:00 GMT with the construction spending figures for September, with expectations that the index will expand by 0.3% from the previous 1.4% expansion.
The ISM manufacturing will also be released at 14:00 GMT, where the indicator is expected to show improvement to 52.3 from 51.6 in October.
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