Daily Currency Update

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The Loonie is trading sideways in alignment with the Canadian economy.

CAD - Canadian Dollar

BoC Governor Carolyn Wilkins said the Canadian economy has had mixed data recently, inferring that it is not improving, and it is not worsening. She referenced the Coronavirus and mentioned that similar outbreaks had affected the country in the past. She also noted that related economic impacts could be seen, “…through a number of channels: it can come through lower oil prices, lower commodity prices, we’ve seen a bit of that. Less travel, so the tourist industry, the transportation industry could find themselves a little offside their forecasts for a little while. At the same time supply chains -- we’re already hearing Canadian companies, lobster’s been in the news quite a bit -- become disrupted”.

For now, the Loonie is in a wait and see mode because crude oil is barely trading above 50 dollars a barrel in the international markets. It was bouncing yesterday, and it even reached 52 dollars. Still, at this moment, it is falling 1 percent again.

Overnight, the Loonie was steady versus the Greenback following stronger commodity prices after China mentioned that it would lower some tariffs on $ 75 billion of U.S. goods next week. Technically speaking, the USD/CAD pair is trading in a range with 1.3262 holding as a crucial support and a 1.3300 handle as a key technical resistance.

Key Movers

The EUR/USD pair touched its daily high of 1.1014 after European Central Bank President Christine Lagarde told European Parliament lawmakers that policymakers have few options for more monetary stimulus after many years of economic crisis-fighting. She was implying that the ECB will not be more dovish or cut rates in even more negative territory. However, the EUR/USD pair is up only 0.05 percent, trading at 1.1003 at this moment.

Expected Ranges

USD/CAD: 1.3243 - 1.3323 ▲

EUR/CAD: 1.4588 - 1.4658 ▲

GBP/CAD: 1.7148 - 1.7275 ▲

AUD/CAD: 0.8947 - 0.8971 ▼

NZD/CAD: 0.8580 - 0.8602 ▼