Home Daily Commentaries CAD extends rally against USD

CAD extends rally against USD

Daily Currency Update

The Canadian dollar extended its rally against the US dollar on Wednesday morning as price action among currencies continued to be driven by risk sentiment surrounding the effects of Omicron. Data showed that Canadian factory sales climbed 3.1% last month and oil prices steadied, which helped boost CAD. Investors were also waiting for the GDP report due on Thursday, which could offer more signals on health of the domestic economy. USDCAD was down 0.43% trading at 1.28560 at the time of writing.

Key Movers

Demand for the pound climbed against the dollar after UK Prime Minister Boris Johnson announced that the government will hold off from introducing any new restrictions before Christmas in order to stem the recent rise in Covid-19 cases. GBPUSD was up 0.62% trading at around 1.3346. The Australian dollar also trended higher on Wednesday as risk sentiment seemed to shift, with investors setting aside fears the Omicron variant could derail the global economic recovery. AUDUSD was up 0.77% trading at 0.72080 at the time of writing.

Expected Ranges

  • EUR/CAD: 1.4546 - 1.4608 ▼
  • GBP/CAD: 1.7104 - 1.721 ▲
  • AUD/CAD: 0.92 - 0.928 ▲
  • USD/CAD: 1.2844 - 1.2937 ▼