Daily Currency Update

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GDP beats forecast

CAD - Canadian Dollar

Demand for the Canadian dollar dropped following the conclusion of the first US presidential debate and in overnight trading climbed higher. Demand is higher this morning than yesterday.

The demand wasn’t driven by President Donald Trump or the candidate opposite the podium. In fact, it was an indicator that’s pushing the needle this morning.
Canadian GDP beat expectations and was up 3% to the prior month. It’s the broadest measure of economic activity and the primary gauge of the economy’s health.

In addition, equity markets are up over 1% this morning, which implies there is a greater comfort with commodity currencies like the Canadian dollar and the Australian dollar.

Key Movers

Majority of investors are fixated on the final stage of Brexit discussions, which restarted yesterday. There are still several areas of disagreement. According to the latest headlines, Brussels rebuffed new UK proposals on state subsidies. Tomorrow morning sees the release of UK Manufacturing PMI, which could likely leave the market unchanged, despite the figure posted.

The Australian dollar crept higher through trade on Tuesday, extending back through 0.71 US cents. Having maintained a narrow trading bound throughout the domestic session the AUD broke resistance at 0.7090 as investors capitalized on recent US gains and squared positions leading into the first Presidential debate. The AUD found added support in improved market sentiment as an uptick in US consumer confidence numbers helped bolster investors' demand for risk. This drove equities higher and dragged the AUD to intraday highs of 0.7140.

Expected Ranges

EUR/CAD: 1.563 - 1.5723 ▲

GBP/CAD: 1.716 - 1.728 ▲

AUD/CAD: 0.952 - 0.957 ▲

USD/CAD: 1.332 - 1.341 ▲