Daily Currency Update

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Canadian dollar continues to climb

CAD - Canadian Dollar

Demand for the Canadian dollar continued to climb and its up nearly three percent against the US dollar since October 28, when demand hit a one-month low.

Since the US began counting votes on Nov 3, demand for USDCAD has dropped two points and its at its lowest since last August. USDCAD traded at 1.306 this morning. Could it fall through 1.30?

Possibly not. StatCan announced that businesses added 83,000 new jobs, well above the 59,000 economists forecasted. The unemployment rate fell to 8.9%.

Key Movers

The Bank of England took center stage on Thursday as the central bank left its interest rate unchanged at 0.1% but boosted its bond buying program by a larger than expected £150 billion. The market responded positively to the news that the bank would make further rate cuts into negative territory. Chancellor Rishi Sunak added fuel to the rally yesterday after extending the Coronavirus Job Retention Scheme that would provide furloughed employees 80% of their usual salary for hours not worked for the next five months, taking the scheme through the difficult winter period, all the way to March next year. He has also agreed to support the self-employed in a similar manner.

Thursday’s session saw the Australian dollar rise to a 6-week high as the greenback fell 0.7% through trade. AUDUSD ascended from 0.7170 to 0.7276 as global equities pushed higher as vote counting continued in the US. The New Zealand dollar also benefited from greenback weakness, with NZDUSD rising from 0.6700 to 0.6769. Despite this, the Australian dollar strength saw AUDNZD rise about 50 points from 1.07 to 1.0750. The Australian dollar will continue to trade on developments out of the US election with overnight moves paving the way to a move above 0.7300 before 0.7345.

Expected Ranges

EUR/CAD: 1.54 - 1.552 ▲

GBP/CAD: 1.708 - 1.719 ▼

AUD/CAD: 0.946 - 0.951 ▲

USD/CAD: 1.302 - 1.309 ▲