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Upward climb continues for Canadian dollar

CAD - Canadian Dollar

The Canadian dollar continued its upward climb against the US dollar and continued to tease its three-month high. As of writing, it traded at 1.337.

The Canadian dollar has been spurred on by improved sentiment for currencies outside the US dollar after the European Union’s pandemic stimulus package was announced last week. On the heels of the announcement, the Canadian dollar has surged upward while others have left the US dollar.

The USD/CAD has moved 1.4% in the Loonie’s favor over the last the month.

Key Movers

GBP/USD opened Monday morning on the rise again, peaking to 1.2846 during the Asian session. The pound's rally will be watched with caution though as Brexit talks stalled last week over the chances of securing a free trade agreement, with Brussels deeming it "unlikely", but London holding out hope one could be reached in September. This mixed with other euro positive news has prevented GBP/EUR moving in a similar direction to GBP/USD, the pair has fallen from last week’s high of 1.1102 down to 1.0950 where we currently trade at the time of writing.

The Australian Dollar finished the week above 70 US cents for the first time this year and hit 15-month highs against the Greenback. The pair finally pushed through the psychological 70 US cent resistance level as testing on multiple occasions since June. It was multiple fiscal policy approvals by both the Australian Government and European Union leaders providing the catalyst for the local currency to hit highs of 0.7183 on Wednesday evening.

In the headlines ahead this week, the latest Federal Reserve Bank interest rate decision will be released. Its widely expected rates will remain at record lows. More importantly it is likely that market participants will be eager to see the release of the FOMC statement where it is expected the Fed will take more of a dovish tone given the economic struggles at present in the United States and globally.

Expected Ranges

USD/CAD: 1.337 - 1.342 ▲

CAD/AUD: 1.0443 - 1.050 ▲

GBP/CAD: 1.716 - 1.725 ▼

EUR/CAD: 1.562 - 1.576 ▼