Daily Currency Update

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Commodity prices improve Canadian dollar

CAD - Canadian Dollar

The Canadian dollar maintained its growing demand against the US dollar yesterday, and USDCAD pushed below 1.27 overnight.

The Canadian dollar, which has benefited from a softening USD, has seen its value improve since Feb. 3. Then, USDCAD was priced at 1.283. Today, its traded as low as 1.268. The CAD has been helped by rising commodity prices. Oil, which has been suppressed due to pandemic lockdowns, has tipped toward $60 a barrel. Of course, equity markets have risen on the hope of the US fiscal stimulus reaching consumers.

Key Movers

Reports Mario Draghi is on the precipice of forming a collation government and becoming the new Italian Premier helped EURUSD drive above the 1.21 level. While EURUSD did peak higher back in December, the pair has not held current levels since March 2018. Having pushed through 1.21 overnight the euro has bounced off last week's dip below 1.20.

Great British pound continued its gains for a fourth day against the USD as markets remain upbeat regarding the global economic recovery from the coronavirus pandemic induced downturn. Markets were buoyed by the US fiscal stimulus. Combined with continuing drops in new coronavirus cases worldwide, there are likely further gains for GBPUSD.

The Australian dollar tracked sideways through trade on Tuesday, maintaining a relatively narrow range in what was a largely uneventful trading day. Having extended beyond 0.77 on Monday, the AUD held onto gains bouncing between 0.7710 and 0.7740 as markets looked to consolidate positions following a 6-day risk positive run. Strength across Chinese Credit Data helped underpin the recovery narrative with slower growth in money supply. The AUD found support in a stronger CNY and higher commodity prices, and a weaker dollar opened the door for another push toward 0.78 US cents.

Expected Ranges

EUR/CAD: 1.537 - 1.540 ▲

GBP/CAD: 1.752 - 1.759 ▼

AUD/CAD: 0.980 - 0.983 ▲

USD/CAD: 1.267 - 1.271 ▲