Daily Currency Update

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USD climbing against CAD

CAD - Canadian Dollar

Supported by signs of positive economic recovery and increased demand driven by a shift away from equities, the US dollar reached a two-week high against the Canadian dollar.

US GDP expanded by 4.3% in the fourth quarter, beating expectations of 4.1% growth. And unemployment claims came in under the expected 727,000. Last week, 684,000 people filed claims for the first time.

The positive momentum has the US dollar in its best shape of the year. EURUSD dropped to a four-month low of 1.181. GBPUSD hit a one-month low of 1.368. AUDUSD reached a three-month low of 0.758.

Earlier this month, USDCAD traded at its lowest levels in three years. The pair climbed over 1.26 this morning, its highest level in two weeks.

Key Movers

The pound was pressured further by tensions over COVID-19 vaccine supplies. Fears that a significant shortage in vaccine supplies, which could derail the UK government's plan to exit the current lockdown, could lead to the pound declining further against other major currencies. UK and EU leaders are set to meet virtually today to discuss COVID-19 restrictions and vaccinations, potentially laying a path for greater collaboration over vaccine sharing.

It is a quiet rest of the week ahead for the AUD with no major news being released. However, we may see some volatility against the USD with further talks by members of the FOMC scheduled to speak later in the day.

Expected Ranges

EUR/CAD: 1.483 - 1.489 ▲

GBP/CAD: 1.718 - 1.732 ▼

AUD/CAD: 0.953 - 0.957 ▼

USD/CAD: 1.254 - 1.262 ▼