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One year since the lockdowns

Daily Currency Update

CAD - Canadian DollarOne year ago, with the initial onset of the COVID-19 pandemic and subsequent lockdowns, demand for the US dollar pushed USDCAD as high as 1.449. Since March 23, 2020, demand for USD has fallen as much as 14% as equity markets recovered and commodity demand increased.Where do we stand today? USDCAD traded 13% off that high and was on the block for 1.255 this morning. And with the US with one of the higher vaccination rates, $1400 checks sent to US households and restrictions easing, the US economic engine could be chugging full steam ahead shortly.

Key Movers

Across the Atlantic, both the euro and pound had a day to forget. The euro fell 0.68% against USD and GBP fell 0.76%. Opening this morning at 1.1849 and 1.3749 respectively, it was again a story of USD strength that drove the currencies south, although a third COVID-19 wave and new lockdown measures employed by some countries certainly did not help.The AUD has slumped 1.53% in overnight trading to open this morning at 0.7623. Bearish market sentiment drove the Aussie sell-off as doubts about the European economic recovery flustered the market. Global equity markets added fuel to the fire also, with equity indexes around the world remaining flat or in the red. This comes despite a 3.75% decline in the 10-year US bond rate, which has recently supported risk aligned currencies. Nevertheless, there have been significant flows into safe-haven currencies with the Greenback leading the way.

Expected Ranges

  • EUR/CAD: 1.484 - 1.492 ▲
  • GBP/CAD: 1.721 - 1.731 ▲
  • AUD/CAD: 0.956 - 0.963 ▲
  • USD/CAD: 1.253 - 1.260 ▼