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CAD falls after oil price snagged by OPEC clash

Tuesday 6 July, 2021

Daily Currency Update

CAD - Canadian DollarDemand for the Canadian dollar fell for a second straight day against a broadly strengthening USD and oil prices took a hit. The price of oil fell after members from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) could not come to an agreement on plans to raise supply to meet rising demand. USDCAD was up 1.07% to 1.2468 at the time of writing. The US Federal Reserve is due to release minutes from its June policy meeting on Wednesday, while the Canadian jobs report for June is due Friday. Some analysts predict that market participants may wait after the Fed minutes and the jobs data before making big moves on their CAD positions.

Key Movers

The euro struggled against the US dollar after investor sentiment in Germany fell sharply in July. EURUSD was down 0.23% this morning, trading at 1.2835.The European Central Bank policymakers will hold a meeting in Frankfurt next week, in an attempt to wrap up the institution's strategy review that was disrupted by the pandemic. The meeting will explore topics such as inflation, employment, climate change and fiscal policy. The event could cause the euro to move in the run up to the meeting if leaks are spread throughout the market.UK Prime Minister, Boris Johnson, yesterday announced that all restrictive measures should be lifted on July 19th, including the use of masks and social distancing rules. The pound received a slight lift on the news, as economic growth is expected to continue. Although Brexit trade talks and the worry of the ‘Epsilon’ COVID-19 variant from California are weighing on the pound. GBPUSD was down 0.13% at 1.3827 at the time of writing.Australia’s central bank left interest rates on hold for the eighth consecutive month, in a bid to support the country’s economic recovery from the pandemic. AUDUSD was up 0.09% at 0.7536 at the time of writing.

Expected Ranges

  • EUR/CAD: 1.4622 - 1.4754 ▲
  • GBP/CAD: 1.7074 - 1.722 ▲
  • AUD/CAD: 0.9283 - 0.937 ▲
  • USD/CAD: 1.2306 - 1.2467 ▲