Daily Currency Update

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Market sentiment expected to drive rates

CAD - Canadian Dollar

The Canadian dollar headed into the weekly close in a relatively stable condition. It closed just below the 1.317 level after topping out at 0.1.324 on Wednesday. It opened this morning at 1.314.

Last week, the Canadian dollar continued to take momentum from global risk sentiment, which bounced from risk-on to risk-off and then back to risk-on last week. Initially the US dollar took center stage and strengthened across the board. Ultimately though, the European Central Banks commentary on Thursday supported risk assets which saw the Loonie bounce back to some degree although it struggled to drop below 1.31 again.

Key Movers

During last week, the Great British pound dropped 5% against the dollar and 3% against the euro. The UK’s hard stance with the EU, and the government’s refusal to budge on a key few issues (including fishing rights). The odds of a no-deal Brexit seem ever increasing as each week of negotiating passes. Some institutions currently setting the odds at 50:50.

The Australian dollar continued to take momentum from global risk sentiment, which bounced from risk on to risk off and then back to risk on last week. Initially the Greenback took center stage and strengthened across the board. Ultimately though, the European Central Banks commentary on Thursday supported risk assets which saw the Aussie bounce back to some degree although it struggled to break through 0.73 again. Moving into a new week, the Aussie again finds itself with a scarce economic calendar early on although there will be a busy Thursday with Australian unemployment, NZ GDP and US FOMC statement to digest.

Expected Ranges

EUR/CAD: 1.558 - 1.565 ▼

GBP/CAD: 1.685 - 1.699 ▲

AUD/CAD: 0.957 - 0.962 ▼

USD/CAD: 1.315 - 1.319 ▲