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Canadian dollar rallies against USD

Tuesday 11 May, 2021

Daily Currency Update

CAD - Canadian DollarThe Canadian dollar has rallied against the US dollar since the The Bank of Canada signalled last month that it could begin raising interest rates in late 2022. Demand for the Canadian dollar was also pushed up yesterday as copper prices hit a record peak, while the price of iron also rose. Oil prices were down as traders waited for the reopening of a major US oil pipeline operator after being hit by a cyber attack. USDCAD is at multi-year lows, trading at 1.208 this morning.

Key Movers

URUSD rose to 1.217 this morning, supported by Europe's accelerating vaccination campaign. US dollar weakness across the board also bolstered the euro’s gains, along with data showing that German investor sentiment climbed to its highest level this month since the start of the pandemic.Great British pound rallied through 1.41 and 1.4150 as investors moved past the Scottish elections. The Scottish National Party fell just one seat short of securing an outright majority, making it much harder for pro-independents to mount another referendum for independence.The Australian dollar marked a fresh two month high through trade yesterday, extending Friday’s upswing to test 0.7890. But AUD failed to hold onto gains through the overnight session, shifting back below 0.7840 amid mounting inflation fears.Demand for the US dollar continued to drop against its major trading partners as investors await US inflation data tomorrow. The US Dollar Index, which measures the strength of the dollar against a basket of major currencies, is down 1.93% in the past month.

Expected Ranges

  • EUR/CAD: 1.467 - 1.474 ▲
  • GBP/CAD: 1.707 - 1.714 ▲
  • AUD/CAD: 0.946 - 0.953 ▲
  • USD/CAD: 1.208 - 1.212 ▼