CAD: Nov 30 OPEC meeting looms large – RBC CM

The Nov 30 OPEC meeting looms large for CAD after Friday’s ~4% selloff in WTI, suggests Elsa Lignos, Senior Currency Strategist at RBC Capital Markets.

Key Quotes

“If a production cut doesn’t materialize as expected by our commodity strategists, that would be the level to watch. Resistance comes in between 1.3575 and 1.3589. Our economists are in line with consensus for Q3 GDP (looking for 3.5%q/q ann. after a wildfire-related decline in Q2). But we are below consensus on November employment (looking for -20k; cons 0k). That follows almost 140k of gains over the past three months which seem overstated (the gains have also been skewed toward part-time employment). We look for the unemployment rate to remain unchanged at 7.0%.”