Daily Currency Update

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The Loonie appreciates following a risk rebound.

CAD - Canadian Dollar

The Loonie appreciates this morning amid a better market mood due to a risk rebound in the capital markets. The Loonie continues to trail most peers, rising against the Euro by 0.14 percent and the Pound by 0.4 percent as concern about the impact of the deadly Coronavirus seems to be touching its peak. The Loonie is doing better, though, than the Aussie dollar by 0.1 percent as well. Probably one of the reasons why is that the price of crude oil has bounced by around 1 percent in the international markets. There is no economic data in Canada today.

Key Movers

The British Pound fell 0.22, 0.3, and 0.31 percent versus the Aussie dollar, Loonie and U.S. dollar, respectively. According to Bloomberg, strategists were attributing the move to negative Brexit headlines and market nervousness around Thursday’s Bank of England meeting. Market participants were responding with selling pressure to headlines from both U.K. & EU officials before the exit day, which is on Jan 31st. This Thursday, BoE Mark Carney’s final decision is very uncertain. Furthermore, Sterling volatility has been increasing over the last few hours as we approach the Thursday BoE decision, when volatility is expected to further increase. The worries about the Pound are more complicated now, with Prime Minister Boris Johnson’s government set to allow Huawei Technologies Co. to build fifth-generation wireless networks, which might complicate relations with the U.S.

Expected Ranges

USD/CAD: 1.3155 - 1.3206 ▲

EUR/CAD: 1.4494 - 1.4535 ▼

GBP/CAD: 1.7115 - 1.7159 ▼

AUD/CAD: 0.8896 - 0.8932 ▼

NZD/CAD: 0.8602 - 0.8625 ▼