Daily Currency Update

Get access to our expert daily market analyses and discover how your currency has been tracking with our exchange rate tools

Canadian dollar ends the week on a high note

CAD - Canadian Dollar

The Canadian dollar reached 7-day highs against the euro, Great British pound and the Australian dollar in early morning trading today. USD/CAD is relatively flat after reaching an eight-month low two days ago.

StatCanada released retail sales figures from June this morning. Sales were up 23.7% in June to $53.0 billion. After three months of sales below pre-pandemic levels, retail sales in June were 1.3% higher than February levels as more regions moved ahead with plans to reopen their economies. Sales were up in all subsectors, with growth primarily led by motor vehicle and parts dealers, as well as clothing and clothing accessories stores.

Overnight, commodity linked currencies, like the Loonie, had suffered over the past 24 hours because of weaker oil prices. Oil dropped after the world’s largest offshore oil rig company Valaris Plc filed for voluntary bankruptcy in the Southern District of Texas. They look to restructure $7 billion in debt.

Key Movers

Initial jobless claims in the UK jumped to above 1 million (against expectations of a drop compared to last month). Although continuing claims edged slightly lower to 14.8 million, while UK Retail sales returned to pre-pandemic levels, posting a 3.6% increase from July. The Office for National Statistics confirmed sales are now 3% higher than February before the World Health Organization declared a pandemic and the UK was placed in lockdown.

The Australian dollar struggled to regain its momentum yesterday after falling a full cent from eight-month highs following the release of US Federal Reserve minutes. Declining from Wednesday night highs of 0.7275, the local currency opened at 0.7180 and continued its shift lower yesterday to intraday lows of 0.7135 during the Asian session amid falling oil prices. Equities were also under pressure seeing a 0.8% drop on the ASX 200 following the soft lead on Wall Street.

Expected Ranges

EUR/CAD: 1.554 - 1.564 ▲

GBP/CAD: 1.725 - 1.744 ▲

AUD/CAD: 0.943 - 0.949 ▲

USD/CAD: 1.316 - 1.323 ▼