Daily Currency Update

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The Loonie falls as the risk-averse tone continues.

CAD - Canadian Dollar

The Loonie falls 0.15 percent versus the U.S. dollar this morning as the risk-averse tone that's been fueled by the widening of the Coronavirus outbreak continues to push buyers into safe-haven currencies such as the Japanese Yen. However, the Loonie is performing more strongly than most of its G10 peers this morning. The Loonie rose 0.42 and 0.21 percent versus the Aussie dollar and Kiwi dollar, respectively, this morning.

BoC Deputy Governor Tim Lane said yesterday that the Bank of Canada is laying the groundwork to introduce a digital currency if it is necessary. He did not comment on monetary policy. The Bank of Canada sees two main scenarios where it could decide to issue its own digital currency: 1) if the use of cash is restricted or eliminated; or 2) if private cryptocurrencies were to make serious inroads. Lane added, "…in both scenarios, there would be an argument for the Bank of Canada to step in." The next BoC meeting to decide on the rate is on March 4th.

Key Movers

ECB Christine Lagarde is speaking at 9:30 am, and the Euro is falling against the Greenback amid speculation of Lagarde's comments about Germany's proposal to freeze the debt limit. Early today, Lagarde said that news that Germany wants to temporarily suspend its constitutional debt brake to provide space for regions to spend more is, "…certainly very welcome."

Expected Ranges

USD/CAD: 1.3267 - 1.3308 ▲

EUR/CAD: 1.4409 - 1.4498 ▼

GBP/CAD: 1.7093 - 1.7208 ▼

AUD/CAD: 0.8654 - 0.8840 ▼

NZD/CAD: 0.8327 - 0.8402 ▼