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CAD lower after oil slump and rising Delta cases

Tuesday 20 July, 2021

Daily Currency Update

CAD - Canadian DollarDemand for traditional safe haven currencies like the US dollar continued to climb as concerns over the Delta variant prompted investors to pull away from stocks and commodity-linked currencies in recent days. USDCAD was trading at 1.2739 at the time of writing.Along with COVID-19 concerns, some market participants think that the persistently high level of US inflation could force the US Federal Reserve's to raise rates sooner than currently expected. Rising Delta variant cases could cause demand for oil to weaken again. Oil prices fell to its lowest level in almost two months on concerns over a halt in the global economic recovery.

Key Movers

Global stock markets and currencies like sterling and the euro have taken a hit over the past week as investors looked to park their cash in safe haven assets. EURUSD was down again today, trading at 1.1760 at the time of writing. Investors are waiting for the European Central Bank’s interest rates decision which is due to be announced Thursday.GBPUSD has fallen from just under 1.39 five days ago to currently around 1.3608. GBPEUR has also tracked lower since the end of last week and currently sat around 1.15 at the time of writing. With many countries tightening up restrictions as the COVID-19 situation deteriorates, UK Prime Minister Boris Johnson has removed virtually all of them despite daily case numbers rising to levels not seen since the worst of the second wave back in January.The Australian dollar lost 1% through trade on Monday, plunging below 0.74 to touch intraday and year to date lows at 0.7327. AUDUSD was down again this morning, trading around 0.7319 at the time of writing.

Expected Ranges

  • EUR/CAD: 1.4991 - 1.5073 ▼
  • GBP/CAD: 1.7337 - 1.7477 ▼
  • AUD/CAD: 0.9324 - 0.9369 ▼
  • USD/CAD: 1.2734 - 1.2781 ▼