Home Daily Commentaries Appetite shifts for more risk

Appetite shifts for more risk

Daily Currency Update

CAD - Canadian DollarThe Canadian dollar crept upward through trade on Monday, supported by improved risk sentiment led by a rally across equity markets. With little domestic data on hand to drive direction, the CAD maintained a narrow trading band throughout the morning.While moves remained largely muted overnight commodity and growth led currencies found some support amid improved appetite for risk after equities and US stock jumped 1%, halting a four-week decline.Demand for the euro gained decent ground earlier this morning. EURCAD is up nearly 1 percent from the previous day broke through 1.57.

Key Movers

With renewed optimism about Brexit talks yesterday the Great British pound was the markets best performing currency. The UK and EU will continue to talk and negotiate despite both sides not ceding any ground on the UK's controversial Internal Market Bill. The EU has stated that the UK has until the end of the month to remove the controversial elements on state aid and export licenses in Northern Ireland before they face legal action.The pound was also buoyed on comments from Deputy Bank of England Governor Dave Ramsden who spoke yesterday in a recorded interview that negative interest rates, despite being in the toolbox, were not appropriate. Ramsden said that he sees “the effective lower band still at 0.1% which is where Bank rates are at present. It is useful to stress that." You can't get a clearer view from an MPC member than that.The Australian dollar crept upward through trade on Monday, supported by improved risk sentiment led by a rally across equity markets. With little domestic data on hand to drive direction the AUD maintained a narrow trading band throughout the local session bouncing off support at 0.7030 yet struggling to extend beyond 0.7050. While moves remained largely muted overnight commodity and growth led currencies found some support amid improved appetite for risk after equities and US stock jumped 1%, halting a four-week decline. Attentions this week remain with the overall risk narrative as investors continue to adjust growth expectations and position ahead of a host of uncertainties leading into year end.

Expected Ranges

  • EUR/CAD: 1.554 - 1.572 ▼
  • GBP/CAD: 1.715 - 1.723 ▲
  • AUD/CAD: 0.945 - 0.954 ▼
  • USD/CAD: 1.335 - 1.340 ▼