Daily Currency Update

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The Loonie loses stem after a crude oil price correction

CAD - Canadian Dollar

The USD/CAD pair is increasing 0.54 percent this morning after a slight decrease in the price of crude oil. Much of the recent surge in crude oil has been caused by supply concerns with OPEC’s production cuts, Iran sanctions, and fighting in Libya, which are all confusing the outlook for production. However, the International Energy Agency advised that falling demand could become a bigger issue for the rest of the year, saying demand for crude offered “mixed signals” amid sluggishness in global economies.

This morning, the new housing price index in Canada was unchanged in February, despite growth in some of the housing markets.

Technically speaking, and with the USD/CAD pair trading at 1.3391 at the time of this writing, we should have resistance levels at 1.3408 and 1.3340. On the other side, we should find some support levels at 1.3351 and 1.3322.

Key Movers

The European Union has allowed the UK more time to find a way of leaving the bloc. The new deadline is October 31st; however, the GBP/USD has had a positive reaction because the uncertainty continues over what Brexit will look like. This situation also might put pressure on Prime Minister Theresa May because members of her party will see the risk of no Brexit. Technically speaking the GBP/CAD pair is going higher because of the Loonie's weakness. Key levels to see today are 1.7465 as support and 1.7592 as resistance.

The dovish ECB was confirmed when Draghi said that they are not only looking at TLTROs (Targeted longer-term refinancing operations), but they are also looking at mitigating negative rates if needed. As you know, the TLTROs provide long-term loans to banks and offer them an incentive to increase their lending to businesses and consumers in the Euro Zone. Technically speaking, for today, the EUR/CAD pair has a support level at 1.5049 and a resistance level at 1.5091.

Expected Ranges

USD/CAD: 1.3322 - 1.3408 ▲

EUR/CAD: 1.5049 - 1.5091 ▲

GBP/CAD: 1.7465 - 1.7592 ▲

AUD/CAD: 0.9525 - 0.9565 ▲

NZD/CAD: 0.8994 - 0.9043 ▼