Daily Currency Update

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The Loonie moderately loses to the Greenback following stronger GDP data in the U.S.

CAD - Canadian Dollar

The USD/CAD pair has increased 0.10 percent by the time of this writing, trading at 1.3180. And, it has already risen 1.15 percent this week (weaker Loonie). Technically speaking, the USD/CAD broke a resistance at 1.3150 (which is a support level now), and it continues pushing upward and towards the next resistance levels of 1.3190 and possibly 1.3219. On the downside, 1.3150 and 1.3120 are two crucial support levels.

Crude oil is set for a weekly gain as U.S. crude stockpiles narrow, and as lingering tensions surrounding Iran set concerns that energy flows from the Middle East may be disrupted. However, this has not helped the Loonie much, as it is not holding gains this week.

In other news, according to Bloomberg, Canada, and the E.U. agreed to set up an alternate channel for settling trade disputes, sidestepping an international deadlock created by the Trump administration.

Key Movers

According to Bloomberg, the IMF's European board members met to discuss the institution's future leadership as Christine Lagarde prepares to take charge at the ECB. At the same time, the ECB's Governing Council signed off on the appointment of Christine Lagarde as president of the ECB, but not all of the 21 voting members backed her. Either way, Draghi's a fan and he added, "…she'll be an outstanding president of the ECB." Mario Draghi, the current ECB head, said that he did not see the Euro area entering a recession, despite the recent under-performance of Germany. Simultaneously, German Finance Minister Olaf Scholz brushed off warning signals; he said, "We are not in a situation that makes it necessary or wise to act as if we were in a crisis, we are not." He added instead that resolving, "…man-made" crises such as trade tensions and a potentially hard Brexit would help boost growth as early as the end of this year.” The EUR/USD pair trades at 1.1132, representing a 0.13 percent decrease.

In the U.K., according to Bloomberg, it seems that Johnson will encounter the same difficulties as May did in trying to get the U.K. out of the E.U., when Commission President Jean-Claude Juncker rejected Boris Johnson's demands for a better Brexit deal, saying the Withdrawal Agreement is the best and only one possible. The GBP/USD pair trades at 1.2417, reflecting a 0.24 percent fall.

Finally, the Aussie versus the U.S. dollar falls for the sixth day, trading at 0.6921, a 16 days low, as traders build bets the central bank will keep cutting interest rates following dovish comments this week from Governor Phillip Lowe.

Expected Ranges

USD/CAD: 1.3150 - 1.3219 ▲

EUR/CAD: 1.4670 - 1.4709 ▲

GBP/CAD: 1.6309 - 1.6409 ▼

AUD/CAD: 0.9074 - 0.9137 ▼

NZD/CAD: 0.8744 - 0.8800 ▼