Daily Currency Update

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The Loonie is in a “dead cat bounce” mode along with crude oil.

CAD - Canadian Dollar

The Loonie rallies, and the most representative FX pair, the USD/CAD, falls 0.24 percent (stronger Loonie), trading at 1.3674 at the time of this writing. Canadian Finance Minister Bill Morneau said he plans a targeted response to the fallout from the Coronavirus and plunging oil prices, and he laid out a cautious approach to fiscal stimulus.

The Japanese Yen plunged more than 2 percent versus the U.S. dollar as expectations grow that governments will introduce stimulus to combat the Coronavirus outbreak. In a turnaround story, currencies of oil-exporting countries, such as the Norwegian krone and the Canadian dollar, led advances following a 12 percent bounce in crude oil.

On the release side, Canada’s industrial capacity utilization rate will be released tomorrow for December 2019. In the previous release, it fell to 81.7 percent from 83.3 (from June 2019 to September 2019).

Key Movers

The Aussie dollar weakens on disappointing business confidence data. At the same time, Italy, the fourth biggest economy in Europe, will be the first country globally to attempt a nationwide lockdown aimed at preventing the spread of the coronavirus.

Expected Ranges

USD/CAD: 1.3644 - 1.3807 ▲

EUR/CAD: 1.5485 - 1.5817 ▲

GBP/CAD: 1.7800 - 1.8000 ▲

AUD/CAD: 0.8900 - 0.9059 ▲

NZD/CAD: 0.8600 - 0.8700 ▲