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USD continues to find support

Monday 7 March, 2022

Daily Currency Update

The US dollar broadly gained on Monday as developments in Ukraine continue to drive market sentiment, and commodity currencies like the Canadian dollar, the Australian dollar and the New Zealand dollar weakened. The price of oil surged to $140 a barrel before pulling sharply as the United States and its allies considered banning Russian oil imports. While the Canadian dollar typically moves in the direction of oil prices, CAD has been unable to hold on to gains due to poor sentiment amid the extreme volatility in markets recently. The US Dollar Index was sitting at 99.24, while USDCAD was up 0.39%, trading at 1.2775 at the time of writing.    

Key Movers

The euro continued its decline against the dollar, falling under 1.090 on concerns that surging oil prices not seen in more than a decade will derail the economic recovery in Europe. EURUSD was down 0.57% trading around 1.0864 at the time of writing. The pound was also pressured by the strengthening dollar on Monday with GBPUSD falling to multi-month lows. Traditionally investors move towards safe haven assets during unstable geopolitical climates. As the tragic situation in Ukraine continues, safe-haven currencies like CHF, JPY and USD have strengthened and were the best performing currencies last week. Should the global geopolitical situation remain volatile, commodity currencies and safe haven currencies could remain supported.

Expected Ranges

  • EUR/CAD: 1.3768 - 1.3931 ▼
  • GBP/CAD: 1.6721 - 1.6867 ▼
  • AUD/CAD: 0.9349 - 0.9457 ▼
  • USD/CAD: 1.2688 - 1.2776 ▲