Daily Currency Update
CAD - Canadian DollarCanadian GDP month over month advanced 0.3% in April easing from the 0.5% from the previous month; consensus expected growth of only 0.1%. The Loonie made little gains on the Greenback after the economic releases. Canadian Raw Material Prices fell -2.8% from previous 3.2% on YoY bases, Producer Price Index YoY also declined in May from 1.7% and 0.6%. The Loonie tested support of 1.3072 (0.7650) at the release of the fundamentals and found first resistance at 1.3114 (0.7625). Market participants expect the Loonie to be well entrenched in this range today 1.3072 - 1.3114 as the markets focus is on the Trump and Xi's meeting tomorrow at the G20 in Osaka Japan. Commodities have been having a good month as well; crude oil is having its best month since January moving higher from falling US stockpile and Iran tensions in the middle east. OPEC meets on Monday and if the cartel can agree on extending their production cut program oil could rally further. Gold has found its luster this month as well and had its biggest monthly gain in over three years testing the 1438.0 a once level this week and currently holds at 1409.00, resistance is seen at 1430.00 to sustain the gold rally.
Key Movers
Otherwise, it was a relatively muted session for other major currencies, including the Greenback. The US Dollar had the opportunity to gain some traction ahead of the G20 meetings but was ultimately left where it started after US GDP came in as expected at 3.1%. There was some support for US equities, however, as reports of a positive outcome at the G20 meeting circulated. The S&P 500 gained 0.5% on the day as risk assets proved to be well bought ahead of the all-important G20 meeting.
Expected Ranges
- USD/CAD: 1.3068 - 1.3106 ▼
- EUR/CAD: 1.4877 - 1.4920 ▲
- GBP/CAD: 1.6580 - 1.6652 ▲
- AUD/CAD: 0.9156 - 0.9186 ▲
- NZD/CAD: 0.8762 - 0.8793 ▲
- EUR/USD: 1.1360 - 1.1393 ▲