Daily Currency Update

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Climbing Canadian dollar supported by surge in oil

CAD - Canadian Dollar

An already strengthening Canadian dollar was nudged higher again today after a cyber attack on a major US pipeline operator pushed oil prices higher. USDCAD was pushed down further to $1.209 at the time of writing.

Colonial Pipeline Co., a supplier of gasoline, diesel and jet fuel to the eastern U.S., said Sunday that it is still working toward working on restarting a key artery to many parts of the country. This disruption has pushed oil prices up as it’s likely to cause fuel pileups and shortages along different parts of the supply chain, but especially in the East Coast.

Demand for the Canadian dollar has remained steady against its US counterpart despite data showing the Canadian economy lost more jobs than expected in April.

Key Movers

The downward US dollar trend helped the euro climb to 0.1% to $1.217, while the pound hit two-month highs, trading above $1.413. All eyes are now on the UK GDP report on Wednesday, as it remains to be seen whether the update will impact GBP as two consecutive quarters of negative growth signals a technical recession and could lead to sterling weakness.

The Australian and New Zealand dollars also made gains today off the back of a weaker US dollar. Higher gold prices also provided some additional support for the Australian dollar. The Australian federal budget is due on Wednesday, which is set to stimulate the domestic economy through job creation and spending on women, childcare and infrastructure.

The US dollar continues to see some softness following the lower than expected employment figures last week. The US Dollar Index was trading at 90.06 at the time of writing.

Expected Ranges

EUR/CAD: 1.469 - 1.476 ▼

GBP/CAD: 1.697 - 1.713 ▲

AUD/CAD: 0.950 - 0.955 ▲

USD/CAD: 1.208 - 1.213 ▼