Daily Currency Update

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Little movement for CAD

CAD - Canadian Dollar

The US dollar saw a little lift across a basket of currencies after data showed US weekly unemployment claims dropped and second-quarter GDP growth was in line with estimates. USDCAD was trading at 1.207 at the time of writing.

The slew of economic data pointing to signs of a fresh US recovery could fuel further debates among investors about which way the US Federal Reserve could go in response to strengthening the economy.

What’s next for the Canadian dollar? Some economists point to US growth as a driver of Canada’s blockbuster recovery. While some signal that a correction may be headed for the currency as commodity prices start to steady.

Key Movers

EURUSD slipped back below 1.22, down 0.07% to 1.218 this morning. Commentary from ECB board members quashed any hope the central bank would reduce bond purchases, suggesting “conditions do not justify reducing the rate of purchases…we need to see a sustained increase in inflationary pressures before we consider tapering.”

The pound was up against the US dollar this morning following a dip from yesterday’s COVID-19 testimony from former UK prime minister aide Dominic Cummings. He suggested the government failed the British public in their handling of the pandemic, contributing to GBPUSD’s drop yesterday. But a Bank of England policymaker commented today that the central bank could raise rates sometime in 2022. This pushed GBPUSD up 0.30% to 1.4163 this morning.

The AUD was one of the worst performers across major currencies yesterday as investors looked to absorb profits on moves approaching 0.78, reluctant to extend gains. Moderating commodity prices, elevated COVID-19 uncertainty and amplified economic tension with China now weigh on near-term AUD demand.

Expected Ranges

EUR/CAD: 1.471 ▼

GBP/CAD: 1.708 - 1.714 ▼

AUD/CAD: 0.934 - 0.939 ▼

USD/CAD: 1.205 - 1.214 ▼