Daily Currency Update

Get access to our expert daily market analyses and discover how your currency has been tracking with our exchange rate tools

The Loonie falls amid the risk-off mood and weak crude oil

CAD - Canadian Dollar

The Loonie declines following a risk-off mood in the FX market due to the Trump impeachment inquiry in the U.S. Furthermore, news that Saudi Arabia is restoring output capacity ahead of schedule has not yet helped the Loonie. Crude oil prices are losing around 2 percent this morning. Saudi Aramco's production capacity now exceeds 11 million barrels a day, beating a self-imposed deadline by about a week. At the same time, the Abqaiq processing plant has 4.92 million barrels a day of capacity available and Khurais has 1.3 million, which are at or above the levels before the September 14th attack. The Loonie is anticipated to move along with crude oil prices and key drivers from the U.S. this week, as there are no Canadian economic data releases scheduled.

Key Movers

House Speaker Nancy Pelosi announced a formal impeachment inquiry of President Donald Trump. The investigation is around Trump's July phone call with the Ukrainian President. However, it is anticipated that a transcript will be released by the White House later today. The President has reacted, hitting back at Democrats and saying the process is "bad for the country." The risk-off mood of the FX market is due to this situation where the Greenback gains almost 0.4 percent this morning.

In New Zealand, the RBNZ left its key rate at 1 percent as most of the market participants had expected. The RBNZ said there's scope to ease policy further if necessary amid slowing economic growth and subdued inflation.

However, in Australia, the RBA is set to reduce the key rate further despite that the current Governor of the RBA helped the Aussie dollar for a short period of time with his comments that, "…there remains scope for more fiscal and monetary stimulus, if necessary, to support the economy and maintain our inflation and employment objectives." This morning, the Aussie and Kiwi dollar are getting hammered in a clear risk-off mood after Trump impeachment inquiry.

British Prime Minister Boris Johnson is back in Parliament today, almost three weeks earlier than planned after his decision to close the legislature was overturned by the U.K. Supreme Court yesterday. The Pound versus the Greenback is falling around 1 percent.

Regarding the U.S - China spat, Chinese State Councillor and Foreign Minister Wang Yi said to New York on Tuesday that while his country has no intention of unseating the U.S. as the world leader, China expects America to, "...remove all unreasonable restrictions."

Expected Ranges

USD/CAD: 1.3215 - 1.3301 ▲

EUR/CAD: 1.4545 - 1.4577 ▼

GBP/CAD: 1.6356 - 1.6508 ▼

AUD/CAD: 0.8940 - 0.9000 ▼

NZD/CAD: 0.8315 - 0.8393 ▼