CAD Outlook for 25 October 2017

Bearish

After weakening in the latter half of October, we are now bearish on the medium-term outlook for the Canadian dollar. The currency is selling off on weak economic data and lower interest rate hike expectations. Earlier, the currency was supported after the Bank of Canada raised interest rates twice this year and suggested that more may be in store. While the loonie was in overbought conditions in September, the currency has since re-entered normal trading conditions. This is based on various technical indicators on a weekly chart of the Canadian dollar currency index. 

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