Societe Generale Research discusses EUR/USD, and USD/CAD tactical outlook and adopts a neutral bias in the near-term.
"The Euro is now snuggled into this 1.13-1.18 range, but the top of it feels a long way away. Better German and Spanish data yesterday was offset by soft Italian data and Italian political concerns aren't going away. Italian retail sales are due to be released before the Eurozone data this morning and the market will react to any weakness, Suffice to say, the euro isn't completely out of the woods even if the Midterms give an additional degree of solidity to that 1.13 level,"SocGen argues
"The Canadian dollar still looks cheap, but the elections and the price of oil both count against it. Frustration will continue and a return to levels below USD/CAD 1.30 isn't imminent," SocGen adds.