Daily Currency Update

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The Loonie is rising this morning following external factors

CAD - Canadian Dollar

The USD/CAD pair trades 0.21 percent lower, at 1.3240, making the Loonie one of the best performers of the major currencies today in a relatively quiet trading session without economic releases in Canada. The Loonie is starting to decouple from crude oil price action, which is slowly falling. However, at the same time, crude oil price action seems oversold, which makes the Loonie an even more attractive currency, adding to the strong fundamentals of the Canadian economy seen last week.

The Loonie was losing around 0.1 percent in the trading session yesterday when the U.S. dollar traded higher after Fed Vice Chairman Richard Clarida suggested that the central bank will alter its strategy for achieving price stability. He added that U.S. inflation expectations are currently in line with the central bank's 2 percent goal and the economy is currently operating at or close to the two goals of maximum employment and stable inflation. Clarida said he does not see a pressing need for new rate cuts to push inflation back up.

Furthermore, the U.S. dollar ended higher after the release of a whistleblower complaint in the Trump impeachment investigation. There was a video of a closed-door meeting that showed the president declaring, "We're at war" and attacking the whistleblower who revealed his controversial phone call with Ukraine's leader.

Key Movers

In Europe, the tensions between the European Central Bank and Germany have again exploded into public view after the resignation of Sabine Lautenschläger, who represented Germany on the central bank's executive board. Ms Lautenschläger is leaving weeks after publicly opposing further easing of super-loose monetary policy by the ECB. On top of that, ECB economist Philip Lane said he thinks there remains room for the bank to cut rates again and said the stimulus program which has split policymakers was, "…not such a big package." This influenced the Euro negatively, falling almost 0.30 percent against the Greenback in yesterday’s trading session.

The European Union is losing faith that Boris Johnson can deliver a Brexit deal by the Oct. 31st. Trust has deteriorated amid Johnson's inflammatory rhetoric following the Supreme Court's declaration that his suspension of Parliament was illegal. At the same time, the Bank of England may need to cut interest rates should Brexit uncertainty persist, according to policymaker Michael Saunders. The British Pound felt the selling pressure after the news.

Expected Ranges

USD/CAD: 1.3215 - 1.3255 ▼

EUR/CAD: 1.4450 - 1.4520 ▼

GBP/CAD: 1.6275 - 1.6355 ▼

AUD/CAD: 0.8950 - 0.9000 ▲

NZD/CAD: 0.8294 - 0.8360 ▼