Expected USD/CAD Range: 1.027 – 1.033
Update: The week has generally been quiet for the Canadian Dollar with the loonie roughly flat to yesterday’s levels at 1.030. Currency traders are focused in the near term on the possibility of a government shutdown in the US resulting from the battle over funding Obamacare and increasing the debt ceiling. We expect a compromise to be formulated in the next several days. A measure of new home sales in the US is scheduled to be release at 10 this morning and there is also significant attention focused on US initial jobless claims and GDP figures coming out tomorrow. Collectively, these data points will provide the first substantial look at the US economy since the Fed’s no-taper decision last week and will go a long way in impacting market expectations with respect to the possibility of tapering in the remaining months of 2014.
The Big Picture: The commodity boom has seemingly ended (or is at least sputtering). Relatedly, Chinese and other emerging market economies have …