Home Daily Commentaries The Loonie continues in rally mode, helped by crude oil

The Loonie continues in rally mode, helped by crude oil

Daily Currency Update

CAD - Canadian DollarThe Loonie has erased most of its gains since Monday's trading session due to a temporary price correction of the crude oil WTI and some pessimistic views of the global economy. According to IMF Managing Director Christine Lagarde, the global economy is in a "precarious" position as global growth around the world slows, but she added that a recession isn't likely in the near-term. Furthermore, the WTO seemed to echo the negative sentiment by saying that there has been a "synchronized deceleration," slashing its global trade growth forecast. This morning though, the Loonie is trading strongly after the crude oil WTI trades slightly to the upside. The USD/CAD is falling (stronger Loonie) 0.22 percent, and it was helped by a weak US dollar, while crude oil gained.Technically speaking, the USD/CAD pair is touching an important support at the 1.3300 handle this morning but the rally of crude oil WTI seems exhausted. However, some intraday levels to watch are level supports at 1.3286 and 1.3270, with the strongest one being at 1.3237. Some resistance levels to watch in case we see weakness in the Loonie are 1.3316 and 1.3326, with the strongest one being at 1.3340.

Key Movers

Definitely, the economic data to be released this Friday are important for the Loonie. With the lack of data this week, the Loonie has been trading following global news, the mood of equity markets, and the price of crude oil . However, this Friday the catalysts will focus on Canadian fundamentals, ie. Net change in employment and unemployment rate for March. For today the Ivey Purchasing Manager index will be released at 10:00 EST.The Loonie rallied this morning as well on optimism the US - China will reach a trade deal. If the good news still coming, it might support the Loonie price even further.

Expected Ranges

  • USD/CAD: 1.3285 - 1.3340 ▼
  • CAD/EUR: 0.6658 - 0.6697 ▼
  • CAD/GBP: 0.5670 - 0.5730 ▼
  • CAD/AUD: 1.0502 - 1.0555 ▼
  • CAD/NZD: 1.1019 - 1.1075 ▼