• USD/CAD rose on Monday as the dollar firmed ahead of US data that could reinforce the Fed’s cautious stance.
• The Fed cut rates by 25 bps last week, but Chair Powell hinted it could be the last cut this year amid economic uncertainty.
•Several Fed officials voiced concern over last week’s rate cut, with markets now pricing a 68% chance of another 25 bps cut in December, down from near-certainty earlier.
• On the data front, Canada’s manufacturing downturn softened in October, with output and new orders contracting at a slower pace amid easing trade-related uncertainty, PMI data showed..
• In the U.S., manufacturing activity contracted for the eighth consecutive month in October as new orders stayed weak, PMI data showed, with markets adjusting to the lack of key economic releases amid the government shutdown.Top of FormBottom of Form
• Immediate resistance is located at 1.4072(23.6%fib), any close above will push the pair towards 1.4094(Higher BB).
• Support is seen at 1.4008(38.2%fib) and break below could take the pair towards 1.3953( 50%fib).
Recommendation: Good to buy around 1.4040, with stop loss of 1.3930 and target price of 1.4130
