Daily Currency Update

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Canadian Dollar Trades on Flows to Start the Week

CAD - Canadian Dollar

With no economic data to report today, the Canadian dollar trades on the ebb and flow of market participants to start the last week of June. Gold prices had its best week in over three years last Friday as the dollar weakened following dovish signals from the U.S. Federal Reserve. It climbed to a high of $1,406 per troy ounce, its highest since August 2013 after the Fed signaled greater readiness to cut U.S. interest rates. Analysts at ANZ stated, ‘A likely rate cut amid slowing U.S. economic growth will limit the upside in the U.S. dollar.’ Its price has also risen as it is a haven for investors who have also rushed to buy it amid the U.S. continuous tension with China and Iran.

Key Movers

The Fed removed the word 'patient' from the official statement at last week's FOMC meeting as broadly expected and stated that they would "act as appropriate to sustain the expansion." The Fed "dot plot" implied that committee members are split on the path forward for rates this year with the median 2019 dots downgraded to no hike, 2020 to one cut and the long-term rate lowered by 25 basis points to 2.50%. USD sold off into the weekend vs. all major currencies with the US Dollar Index (DXY) and EURUSD finally closing through their 200-day moving averages, after many failed attempts this year.

Expected Ranges

USD/CAD: 1.3216 - 1.3176 ▼

EUR/CAD: 1.5006 - 1.5048 ▲

GBP/CAD: 1.6771 - 1.6840 ▼

AUD/CAD: 0.9146 - 0.9187 ▲

NZD/CAD: 0.8696 - 0.8732 ▲

EUR/USD: 1.1365 - 1.1398 ▲