Reasons for the decline
The Canadian dollar is a standout performer today. USD/CAD has broken the September low to trade at the worst level since July 31.
There are a few reasons for the decline:
- The Sept ADP Canada jobs report was strong with a very strong upward revision
- Canadian manufacturing sales were also slightly better than expected
- The broad risk tone is positive
- The US dollar is broadly softer on growing expectations of a Fed cut on Oct 30 (perhaps misplaced?)
The impressive thing about the drop is that it comes despite a dip in oil prices and the risks around the Canadian election on Monday. The Conservative and Liberals are truly neck-and-neck in what's almost certain to be a minority government. The vote is Monday.