Daily Currency Update

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Canadian dollar bound to US

CAD - Canadian Dollar

After reaching a 3-month high against the US dollar two days ago, the Canadian dollar declined in overnight trading. With the news that US GDP shrank 32.9% annually, demand for Canadian goods appears to have dried up.

The Loonie’s value has gone sideways against other currencies of late. After the European Union said that it would consolidate its collective debt power to fund an economic stimulus, EUR/CAD nearly reached a 3-month high. This morning, GBP/CAD hit 1.751, a one-month high.

Key Movers

The Australian dollar crept upward through trade on Wednesday amid dovish commentary from the US federal reserve and a broadly upbeat risk on tone. Having struggle to consolidate a break above 0.7150 throughout the domestic session the AUD stretched its legs overnight and appears poised to break through 0.72 before resistance and profit taking tempered gains. Having touched intra-day and 15-month highs at 0.7195 the AUD has edged marginally lower into overnight trading.

The number of cars built in the UK over the past six months has slumped to the lowest since 1954, down 42% on the same period last year. The trade body estimated that 11,349 jobs were lost in the past six months at carmakers and companies which supply them with parts and services. To combat small businesses from collapsing it’s been widely reported over the last 24 hours that the government is expanding its COVID-19 rescue loan scheme. Brexit uncertainty and questions over the economy’s ability to rebound after the pandemic weigh on the currency.

Expected Ranges

USD/CAD: 1.333 - 1.1345 ▼

CAD/AUD: 1.041 - 1.046 ▲

GBP/CAD: 1.731 - 1.757 ▼

EUR/CAD: 1.5707 - 1.585 ▼