Daily Currency Update

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CAD value drives new USDCAD lows

CAD - Canadian Dollar

The CAD tracked lower toward 1.29 on Wednesday, continuing the week’s performance amid broader US dollar weakness. USDCAD reached lows not seen since October 2019 as expectations for US fiscal stimulus drove investors toward traditional risk assets.

With little of note on today’s domestic docket, attentions turn to Friday’s employment change stats and the broader risk narrative as the catalyst driving direction into the weekly close. Markets appear reluctant in extending below the 1.28 handle.

Key Movers

The euro remains a benefactor of global risk appetite. Also news that there could be final approval of the EU pandemic bonds package in the coming days, which will pump much needed economic stimulus across the bloc.

Michel Bernier and David Frost continued Brexit discussions in London around the final parts of a deal. Limited updates have come out of the summit, suggesting that we could be at the very final stages before a deal is announced. However, to pour cold water on the pound, Bernier did state on Monday in front of EU ministers, that the union was willing to walk away from the negotiations if the parties could not agree to favorable terms. The news pushed GBPUSD temporarily lower towards, but the resilient pound has already regained ground.

The AUD advanced back toward 0.74 US cents on Wednesday, shrugging off Tuesday’s underperformance amid broader US dollar weakness and a stronger than anticipated uptick in Q3 GDP growth. With little of note on today’s domestic docket, attentions turn to Friday’s US non-farm payroll print and the broader risk narrative as catalyst driving direction into the weekly close. Markets appear reluctant in extending beyond the current resistance handle, seeking a new catalyst before driving gains toward 0.75.

Expected Ranges

EUR/CAD: 1.563 - 1.570 ▼

GBP/CAD: 1.725 - 1.739 ▼

AUD/CAD: 0.956 - 0.960 ▲

USD/CAD: 1.287 - 1.294 ▲