Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Elections in Canada: what do they mean for the CAD?
Information is not investment advice
Today, the election in Canada will determine whether the Liberal Party Prime Minister Justin Trudeau or the Conservative Party leader Andrew Scheer will lead the government.
According to analysts, the most likely scenario is a government that does not command an absolute majority. Plus, some of the experts suggest that the minority administration led by the Conservative party would be better for the Canadian dollar than the one led by Trudeau and his team. The reason behind this opinion lies in the Conservative party's promises to remove Trudeau's oil regulations. It will help to boost the CAD, as it is the commodity-linked currency.
At the moment, USD/CAD is trading at the lowest levels since July. If the loonie is supported today, the support for the pair will lie at 1.3083. The next support will be placed at 1.3052. In case of a reversal, you need to pay attention to the 1.3132 level. The next resistance will be placed at 1.3145.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.