CAD - Canadian Dollar
After a week in which demand for the Canadian dollar wavered, the currency opened the week bouncing within a small range.
Demand between USD and CAD has varied. USDCAD broke through 1.34 and fell down to 1.336. With little macro-economic data to start the week, risk sentiment will drive demand for the currency.
As countries continue to adapt to the coronavirus, investors and ratings agencies expect credit profiles to adjust. Last Friday, Moody’s Investors Service said in an interview that they expect government’s like Canada to balance economic recovery efforts with fiscal considerations.
Brexit talks resume tomorrow as both the EU and UK look to come to deal before the 'deadline' of the EU summit on 15th October. Even the deadline date has become a cause of confusion/difference with the UK sticking to the week after next whilst there are reports out of Europe that the EU is already considering the end of October. Either way as dates are pushed back the clock is continuing to click towards the end of the year and the shorter this time frame is the more volatility can be expected.
Last week saw the Australian Dollar fall approximately 3.5% against its US counterpart. Having started the week around the 0.73 handle, we now see AUD/USD trading closer to 0.70 as we head into this week. Although the NZD also fell over 3%, AUD/NZD fell nearly 0.5% throughout the week and is now trading below the key 1.08 handle. Although a lot of the move can be attributed to weaker risk sentiment and broad-based USD strength, the Australian Dollar was weighed down by rising expectations that the Reserve Bank of Australia will ease monetary policy further at the next meeting.
1.555 - 1.562 ▼GBP/CAD:
1.707 - 1.726 ▼AUD/CAD:
0.9411 - 0.945 ▼USD/CAD:
1.336 - 1.340 ▼