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The Loonie erases some losses after positive numbers from Ivey Purchasing Managers

CAD - Canadian Dollar

The USD/CAD pair increased this morning for the second consecutive day after crude oil WTI appreciation slowed down in yesterday’s trading session. The official Energy Information Administration numbers of the US crude oil inventory change registered a surprise boost of 7.2 million barrels compared to analysts' estimate for a draw of 425 K barrels for the week ending on March 29th. The Loonie is affected by crude oil because it is the most significant export component of Canada.

However, for today, the trade negotiations between US lawmakers and Chinese Vice Premier Liu He’s team will be the highlight. Positive news reports could drag the USD/CAD pair downwards (stronger Loonie) because it would reduce the US safe-haven demand. In the flip side, not so positive news would push the USD/CAD pair further to the upside (weaker Loonie).

Technically speaking, there is a strong resistance at 1.3370, but if the price goes above that level, it could test the area of 1.3400 - 1.3405 (weaker Loonie), or if the price goes lower than the current price 1.3359, it could reach support levels of 1.3340 and 1.3317 (stronger Loonie). All of these levels will be at the mercy of US-China trade results.

Key Movers

From the economic release standpoint, the Ivey Purchasing Managers Index was published today at 10:00 EST; it came in at 54.3 when the read was 51.4. This situation made the Loonie stop losses and trade in a more positive manner.

Expected Ranges

USD/CAD: 1.3300 - 1.3370 ▲

CAD/EUR: 0.6655 - 0.6686 ▲

CAD/GBP: 0.5699 - 0.5730 ▲

CAD/AUD: 1.0501 - 1.0555 ▲

CAD/NZD: 1.1052 - 1.1139 ▲