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CAD rally stalls ahead of jobs report

Daily Currency Update

CAD - Canadian DollarThe Canadian dollar was down 0.51% against its US counterpart this morning, after the US dollar moved modestly higher against a basket of currencies. USDCAD was trading at 1.2097 at the time of writing. Yesterday CAD was well on its way back to a six-year high, supported by an uptick in oil prices. The Canadian dollar has gained 2% so far in 2021. With Canada being a major exporter of oil and other commodities, some analysts still see room for more gains as both domestic and international economic recovery picks up. Economists will be paying close attention to tomorrow’s monthly jobs report.

Key Movers

The euro continued to struggle to break above 1.22, even after data showed that there was a surge in Eurozone business activity in May. IHS Markit’s final composite Purchasing Managers’ Index (PMI) jumped to 57.1 last month from April’s 53.8, its highest level since February 2018. EURUSD was down 0.54% at 1.2144 at the time of writing. The pound failed to consolidate gains above 1.42, content to bounce between 1.4100 and 1.4200. The UK government is paying close attention to COVID-19 cases after the most recent bank holiday. Data does not yet show any substantial lift in hospitalizations in areas impacted by the new variant. Demand for the US dollar against a basket of currencies continued to tick up ahead of a batch of economic data due today and tomorrow. The US Dollar Index was up 0.42% this morning, trading at 90.29 at the time of writing.

Expected Ranges

  • EUR/CAD: 1.469 - 1.472 ▼
  • GBP/CAD: 1.704 - 1.712 ▲
  • AUD/CAD: 0.928 - 0.934 ▼
  • USD/CAD: 1.203 - 1.211 ▲