Forex Flash: USD/CAD key level is 1.0040 – Scotiabank

FXstreet.com (Barcelona) - The cross has found bids close to the parity level at 1.0005 on Thursday, as risk aversion was alternating with risk appetite during the session.
Canadian docket was almost empty today, as only Manufacturing Shipments were released, increasing 0.4% during October, above forecasts of +0.3% albeit lower than September's +0.9%.

After yesterday's FOMC minutes, Currency Strategist at Scotiabank E.Theoret, believes the outlook for relative monetary policy could benefit the Loonie. "Easy Fed policy and the expected expansion of QE support CAD in two ways, the first of which is the direct FX impact, arising from a weaker USD, with the second being that Fed accommodation seeks to stimulate US growth, thus supporting the Canadian economy as well. Commodity prices are stronger, and equity indices are pointing to a positive NA open, providing support to CAD. For USDCAD, 1.0040 is the key level to watch, given that it represents the 50% Fibonacci retracement level of the decline from June to mid-September, and given that movement above this level has been limited."