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CAD up as oil prices rise

Daily Currency Update

CAD - Canadian Dollar

Demand for the Canadian dollar climbed against the US dollar on Monday as oil prices bounced back. USDCAD was down 0.47% trading around 1.2782 at the time of writing.

The price of oil rose after Saudi Arabia boosted crude prices, which signalled to the market the major producer’s confidence in demand outlook despite the spread of the Omicron variant. Investors were also upbeat after several reports said that while the variant can be more transmissible, its symptoms were considered to be mild.

Key Movers

Tuesday’s German ZEW Economic Sentiment survey will be the key release from the Eurozone. We could also see Germany's new coalition government finally formed. EURUSD was trading around 1.12810 at the time of writing.

The pound edged higher against the US dollar on Monday after Bank of England Deputy Governor Ben Broadbent’s speech, in which he said the UK’s tight labor market could add to inflationary pressures. Some analysts considered this as a signal that the central bank could hike rates at its December 16th meeting. GBPUSD was trading at 1.3253 at the time of writing.

The Australian dollar climbed against its US counterpart on Monday morning after last week’s selloff. Relatively upbeat news about the Omicron variant’s milder symptoms has helped the AUD’s recovery. AUDUSD was up 0.64% at around 0.70440 at the time of writing.

Demand for the US dollar climbed against a basket of currencies on Monday after investors further weighed the potential effects of the COVID-19 Omicron variant. The US Dollar Index was sitting around 96.27 at the time of writing. The US dollar was also up 0.49% against the Japanese yen.

Expected Ranges

  • EUR/CAD: 1.4406 - 1.4517 ▼
  • GBP/CAD: 1.6928 - 1.6999 ▼
  • AUD/CAD: 0.8977 - 0.9018 ▼
  • USD/CAD: 1.2778 - 1.2843 ▼