FXStreet reported a stronger Canadian dollar early Tuesday, with USD/CAD below 1.3960, while crude quotes varied after accounts of U.S. strikes on Iran and Americans prepared for midterm voting.
At 2:31 a.m. ET (07:31 UTC), FXStreet reported USD/CAD below 1.3960, down from session highs just under 1.4000 and approaching 1.3941, its seven-week low. The pair remained above 1.3941, which the outlet identified as a seven-week low. A lower USD/CAD reading means a stronger Canadian dollar.
The oil quotes came from different points in the trading day. FXStreet put Brent above $106 a barrel, up about 2.8%, in its 2:31 a.m. ET report. Reuters had recorded Brent futures at $105.25 at 8:04 p.m. ET Monday (01:04 UTC Tuesday), then at $104.80 at 10:55 p.m. ET Monday (03:55 UTC Tuesday). Those earlier readings represented gains of 0.5% and 0.03%, respectively, after Brent settled Monday at $104.77, down 7.63%.
An unnamed U.S. official told The Associated Press that American forces carried out strikes in the Strait of Hormuz, hitting some Iranian targets in what the official described as a defensive action. Iranian state television reported explosions on Qeshm Island.
FXStreet cited higher oil prices as possible support for the Canadian dollar. Canada exports substantial amounts of oil, Reuters has reported. Continuing energy costs also pose an inflation risk: The Bank of Canada raised its target for the overnight rate by 25 basis points to 2.5% on Oct. 28 to limit their effect on other prices. The bank left open another increase while citing uncertainty.
The Federal Election Commission lists Tuesday, Nov. 3, as the U.S. federal election date; state election offices certify results, which the commission does not publish immediately. The Institute for Supply Management (ISM) said its U.S. manufacturing index rose to 55.5% in October from 54.5% in September, marking 10 consecutive months of expansion.
Bank of Canada Gov. Tiff Macklem and Senior Deputy Gov. Carolyn Rogers are scheduled to appear before a parliamentary finance committee Tuesday. ISM’s next manufacturing report is due Dec. 1, and the Bank of Canada’s next rate announcement is scheduled for Dec. 9.
