Canadian dollar up with the price of oil
Monday 10 August, 2020
Daily Currency UpdateThe Canadian dollar climbed upward against the euro, pound and US dollar in overnight trading after the price of oil reached $42 a barrel. Saudi Aramco's Chief Executive Amin Nasser said on Sunday that he expects demand to increase in Asia as covid lockdowns ease. The Canadian dollar climbed with the price of the barrel of oil. USD/CAD was up nearly a quarter percent and EUR/CAD was up 0.42% this morning.
Key MoversThe dollar was mixed in the first days of trading since US legislators failed to agree on a stimulus package and President Donald Trump signed executive orders attempting to reboot the economy. The US Dollar Index is up .05% since yesterday’s close and is down a tenth of a percent against the euro and the pound. USD/CAD is down .25%. UK jobs data could spark a reversal in the pound's recent gains should the unemployment rate in June exceed a forecast of 4.2%. The pound may come under significant pressure should the unemployment data come out worse than expected. Further concerns lie ahead when the British government's £33.8 billion furlough scheme comes to an end in October. The Royal Bank of Australia said that it expects GBP to fall 3% in 2020 followed by a likely 6% rise in 2021. Lockdowns in the country could fuel a longer economic recovery and push unemployment into next year with an unknown timeline of when a COVID-19 vaccine will be available. It is unlikely the RBA will change its current stance on the cash rate keeping it at record lows of 0.25%.
- USD/CAD: 0.746 - 0.749 ▲
- GBP/CAD: 1.743 - 1.749 ▼
- EUR/CAD: 1.570 - 1.577 ▲
- AUD/CAD: 0.955 - 0.958 ▲