Daily Currency Update

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The Loonie Makes Slight Gains as Crude Oil Prices Surge

CAD - Canadian Dollar

The Canadian dollar strengthened against the greenback as crude oil prices surged. Demand for oil has dropped in recent weeks as much as 30M barrel per day as COVID-19 brings the global economy to a grinding halt. This is roughly the combined amount of output Russia, Saudi Arabia and the U.S produce daily. Crude oil price spiked as much as 25% yesterday as President Trump in a briefing indicated that he has spoken with both the Suadi's and Russia and that a significant deal to cut output is imminent. Thereof coarse is skepticism in the market due to waining and depressed demand of oil, yet crude gain another 5% overnight. OPEC is scheduled for a virtual meeting this coming Monday with its partners and even producers outside the cartel.
The most important market news today is the US Jobs report, Non-Farm Payrolls revealed a staggering loss of 701K, seven times worse than market consensus, and the first time in a decade jobs readings turned negative. The COVID-19 pandemic is the leading cause of the downturn in labour markets. Gold continues to rise and is up another five dollars today to 1642 an ounce. North American Equity markets are all trading lower to start the day.

Key Movers

Attentions remain squarely affixed to the evolving pandemic, and we expect the U.S. Dollar will remain mostly well bid as risk sentiment continues to falter in the face of the unrelenting pandemic. That said, with U.S. funding costs easing topside moves amid normalized trading patterns are likely to be modest and more measured. At the same time, a sharp correction remains in play should panic envelop broader financial markets again.

Expected Ranges

USD/CAD: 1.4117 - 1.4124 ▼

EUR/CAD: 1.5225 - 1.5374 ▼

GBP/CAD: 1.7266 - 1.7553 ▼

AUD/CAD: 0.8469 - 0.8608 ▼

NZD/CAD: 0.8267 - 0.8382 ▼