Daily Currency Update

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Demand mixed for Canadian dollar

CAD - Canadian Dollar

After making gains against some major currencies to start the week, the Canadian dollar lost strength in early morning trading today.

EURCAD bottomed out at 1.554 yesterday before it climbed to 1.56 this morning. GBPCAD hit 1.692 and climbed through 1.705 this morning. And against the Australian dollar, demand for CAD continued for a fourth straight day. The pair traded at a 7-day low of 0.948.

Demand for the US dollar continued for a fourth day in a row amid the lead up to the 2020 US Presidential Election. It was a flurry of political headlines capped by Supreme Court speculation and a stopgap budget deal to avert a US government shutdown. Meanwhile this morning, the, the S&P500 was down a tenth of a percent.

As it is, the USD gained strength. USDCAD traded this morning at a one-month high of 1.336.

Key Movers

The Great British pound drifted near two-month lows on Tuesday as British Prime Minister Boris Johnson revealed further restrictions to tackle a second wave of the coronavirus. The recommendation to work from home if possible and the 10pm curfew on bars and restaurants does not give much hope for an economic recovery. European Union chief negotiator Michel Barnier is expected to visit London today as part of continuing talks on Britain’s exit from the bloc.

The Australian dollar tracked lower through trade on Tuesday weighed down by a shift in risk sentiment. Risk sentiment continues to sour as uncertainty envelops financial markets. The positive markers investors have clung to through the last 3 to 4 months are faltering as hopes for a quick economic rebound fade in the face of reinstated restrictions. Having broken support at 0.7190/0.7200 the AUD is vulnerable to a further downward correction through the short term as sentiment continues to drive direction.

Expected Ranges

EUR/CAD: 1.554 - 1.561 ▼

GBP/CAD: 1.691 - 1.706 ▼

AUD/CAD: 0.947 - 0.955 ▲

USD/CAD: 1.329 - 1.336 ▼