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No news in Canada is good news for the Loonie

Monday 23 November, 2020

Daily Currency Update

CAD - Canadian DollarThe Loonie has been trading sideways against G10 currencies in early trading in Asia and Europe; however, it has been moving positively since the beginning of the North American trading session following the US dollar, which strengthened following AstraZeneca's news about the effectiveness of their vaccine. So far, the Astra Vaccine prevents an average of 70% of Covid cases based on a study. The Loonie is higher by 0.05%, 0.34%, 0.38%, and 0.39% against the US dollar, Aussie dollar, Kiwi dollar, and Euro this morning. There is no economic news in Canada today.

Key Movers

rly today, the EUR/USD climbed to a two-week high (since November 9th), trading above the 1.1900 handle, and it reached 1.1906 for around 3 hours before falling to mid 1.1800, when the US trading session started. The move though brings the next resistance level at 1.1920 into focus, which coincides with the U.S. election.In the U.S. IHS Markit Economics released the U.S. flash manufacturing purchasing managers’ index for November. The index rose to 56.7, the highest reading since September 2014, from 53.4 in October. It was 52.6 a year ago. Emerging-market currencies rose for a third week amid optimism over progress towards a coronavirus vaccine. The Mexican Peso, Brazilian Real, South African Rand, Chinese Renminbi, and Indian Rupee rallied 1.5%, 1.38%, 0.71%, 0.66%, and 0.62% versus the Greenback last week. Last night in Asian and European trading sessions, the U.S. dollar declined while global equities climbed, lifted by positive risk sentiment following the vaccine announcement from Astra-Oxford. Today’s session low for the USD/MXN pair was 19.9482, the strongest level for the Mexican Peso since March 6th.

Expected Ranges

  • USD/CAD: 1.3057 - 1.3128 ▲
  • EUR/CAD: 1.5458 - 1.5525 ▲
  • GBP/CAD: 1.7376 - 1.7500 ▲
  • AUD/CAD: 0.9505 - 0.9558 ▲
  • NZD/CAD: 0.9008 - 0.9070 ▼