The Loonie rises to the highest level since April 2019 versus the Japanese Yen
Thursday 1 January, 1970
Daily Currency UpdateCAD - Canadian DollarThe Loonie appreciates slightly between 0.02 and 0.06 percent versus the U.S. dollar, Euro, Kiwi and Aussie dollar on a relatively quiet day in the FX markets. At the same time, the Loonie rises to the highest level since April 2019 versus the Japanese Yen, trading at 84.27 this morning due to a very positive mood in the global equity markets (the Yen is considered a safe haven currency). In general, crude oil prices have been backing off, which have been weighing on the Petro currency, and the jobs reports on Friday helped the USD/CAD pair to stay in a lower range. It touched a low of 1.3030, and it is trading at 1.3040 at the time of this writing. For now, monitoring U.S. data will be essential in finding direction for the rest of the week, but market participants will find as well some clues on the Loonie today at 10:30 am EST from the BoC Business Outlook Futures Sales.
Key MoversThe BoC and ECB will release their decisions on monetary policy next week, on the 22nd and on the 23rd of this month, which will shed some light in the Pound and the Loonie. However, for now, the biggest loser this morning is the Pound, followed by the Japanese Yen. The Sterling is falling today as weak GDP data added to the case of the BoE rate cut. Monthly GDP came in at -0.3 percent month to month versus the expected 0 percent. Furthermore, recent comments from BoE officials are suggesting that they’re open to easing if data don’t show improvement. BoE policymaker Gertjan Vlieghe said he would vote for an interest-rate cut this month if there are no signs of the economy improving. This Wednesday at 4:30, CPI numbers will be released in the U.K. Regarding the Euro, there are two European Central Bank speeches scheduled for tomorrow by Yves Mersch in Frankfurt and François Villeroy in Paris.
- USD/CAD: 1.3006 - 1.3066 ▼
- EUR/CAD: 1.4500 - 1.4551 ▲
- GBP/CAD: 1.6919 - 1.6995 ▼
- AUD/CAD: 0.8990 - 0.9036 ▼
- NZD/CAD: 0.8602 - 0.8660 ▼