Daily Currency Update

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Government extends relief, border closure

CAD - Canadian Dollar

The Canadian and US governments extended by 30 days limitations to border crossings yesterday. The impact on non-essential crossings has limited the spread of COVID-19, however, commerce has continued between the two countries.

According to a CNN report, the busiest corridor between Windsor and Detroit may expect more commerce as the US auto industry reopens this week. The US-Canada border has been closed to non-essential travel since March 21. The new rules extend the restriction until July 31.

Below the border, US Federal Reserve Chairman Jerome Powell will spend today and tomorrow testifying before Congress. He will provide the legislators with an update on monetary policy. His comments will be closely watched.

Key Movers

With little of note on the macroeconomic docket today attentions will remain with the broader risk tone. The Bank of Japan’s monthly policy meeting will likely pass without incident while US retail sales are unlikely to tip the scales. The market continues to largely ignore backward looking fundamentals instead looking to sentiment and forward guidance as markers of future performance and signals guiding the speed of any economic recovery. That said a strong retail sales print could bolster risk appetite as consumer spending increases amid easing restrictions.

Expected Ranges

USD/CAD: 1.351 - 1.361 ▲

EUR/CAD: 1.522 - 1.538 ▼

GBP/CAD: 1.705 - 1.717 ▼