Daily Currency Update

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No major moves for Loonie

CAD - Canadian Dollar

There is a general risk off mood in the markets today as Coronavirus cases around the world steadily increase. The Canadian dollar is down in value against the US dollar and reached 1.359 at the time of writing.

Stock markets around the world have given up yesterday's gains overnight as Coronavirus continues to cause concern. The US is close to nearly 3 million positive tests with over 130k deaths as cases continue to rise in southern states such as Florida, Arizona and Texas. In Australia, the government imposed a second lockdown in Melbourne after a recent spike in infections. In Japan, there has been a recent rise in cases in Tokyo and India has overtaken Russia to third in the world for confirmed cases behind only the States and Brazil. As it appears the situation is slowly coming under control in most of Europe. The focus now appears to be on countries further afield.

There was one set of key data yesterday. The US ISM Non-Manufacturing PMI for June posted a very strong 57.1 when 50 was expected. This buoyed equity markets, however as mentioned, these gains have now been erased.

Key Movers

Across the pond, the Euro was the best performer for the day, reaching a high of 1.1345 before receding late in the session to open at 1.1308. Following the rally in Asian equities, the Euro also found support from a better-than-expected result in European retail sales with the decline only coming in at -5.1% year on year. The Euro continued to take its direction from risk-aligned assets however and moderated later in the day as the US Dollar regained some ground.

After making a play for 0.70, AUD/USD is lower on the announcement of the lockdown in Melbourne and with little top tier data this week to analyze it seems the spread of the virus will dictate currency moves with USD likely to gain should sentiment remain negative. Indeed, the euro which has shown strength of late has slipped a little this morning with EUR/USD back under 1.13 due to risk aversion. The move lower for the euro was likely given some extra impetus by German Industrial Production figures falling short of expectations this morning showing a 7.8% gain when 11% was the median forecast.

Expected Ranges

USD/CAD: 1.352 - 1.359 ▼

GBP/CAD: 1.690 - 1.71 ▼

EUR/CAD: 1.529 - 1.534 ▼