Home Daily Commentaries The Loonie slides with crude oil

The Loonie slides with crude oil

Daily Currency Update

CAD - Canadian DollarThe USD/CAD rises 0.16 this morning to 1.3075 (0.7648). The USD/CAD increases (the Loonie loses against the Greenback) after it was lifted slightly following the release of stronger than expected Philly Fed Manufacturing Index results, which jumped to 21.8 in July compared to the 5.0 rise expected and the 0.3 experienced in the previous release. On the release side in Canada, the Canadian ADP Non-Farm Industry Jobs Report came in at 30.4 K, but this did nothing to impact in the Loonie. Crude oil prices were trading flat this morning and could not stop depreciation of the Loonie, probably because it has fallen for three consecutive days and it has only been supported by escalating geopolitical tensions in the Middle East. Technically speaking, the USD/CAD might have an important resistance at 1.3093 (0.7638) and a key support at 1.3050 (0.7663) for today's’ trading session.

Key Movers

According Bloomberg, Boris Johnson, the likely successor of Theresa May as U.K. leader, said a U.S. trade deal won't be reached soon after Brexit, predicting "tough" and "robust" talks. In other news, the U.S.- China trade deal has stalled, as the Trump administration needs to determine how to address Beijing’s demands that the U.S. ease restrictions on tech giant Huawei. There are no face-to-face meetings scheduled since President Trump and China’s President Xi Jinping met last month.With the Fed expected to cut interest rates this month and at least once more in 2019, central banks around the globe have initiated a cycle of easy monetary policy, which might affect major currencies’ price action and volatility, which should increase in the following weeks.

Expected Ranges

  • USD/CAD: 1.3050 - 1.3093 ▲
  • EUR/CAD: 1.4640 - 1.4700 ▲
  • GBP/CAD: 1.6255 - 1.6400 ▲
  • AUD/CAD: 0.9175 - 0.9217 ▲
  • NZD/CAD: 0.8785 - 0.8836 ▲