Daily Currency Update
CAD - Canadian DollarThe Canadian dollar made an advance on its U.S. counterpart yesterday after Bank of Canada Governor Steven Poloz said the Canadian economy is in good shape. He also went on to make comments on monetary policy and that current conditions and views are appropriate. Market participants started to factor in his remarks on the Loonie, and decreased the potential of a BOC rate cut in the last half of 2019; economists are eyeing the first part of 2020 for the central bank to move rates lower. Today's focus is on Canadian Retail Sales for September and the barometer of spending by the Canadian consumer.WTI crude oil helped in the Loonie's advance marginally against the greenback as draws on U.S. inventories were less than expected, and trade deal optimism being priced in. WTI is moving lower again down -0.20 percent to 58.45 a barrel.The technical picture for the loonie finds support at the 1.3270, the 200-day moving average, and resistance now at the psychological level of 1.33.
Key Movers
Sterling is lower on the back of a stronger U.S. dollar across the board. The GBP/USD has reversed all gains from earlier on in the week and has dropped from 1.2969 to 1.2904. The Euro is another currency that relinquished all gains falling from 1.1097 down to 1.1052 following the ECB Monetary Policy Meeting Accounts. European Central Bank’s Luis de Guindos comments were interpreted that a cut to deposit rate is still in the cards next year.Meanwhile, in the U.S., we saw a few macro releases; the Philadelphia Fed survey picked up a little in November rising to 10.4 from 5.6 in October, which was well above market expectations. Also, the number of Americans claiming unemployment benefits were flat at 227k for the week; these numbers are still sitting at five-month highs.
Expected Ranges
- USD/CAD: 1.3270 - 1.3300 ▼
- EUR/CAD: 1.4671 - 1.4711 ▼
- GBP/CAD: 1.7063 - 1.7173 ▼
- AUD/CAD: 0.9006 - 0.9028 ▼
- NZD/CAD: 0.8496 - 0.8531 ▲