The Loonie continues suffering from the risk-off environment and the plunge in crude oil prices.
Thursday 3 October, 2019
Daily Currency UpdateCAD - Canadian DollarThe USD/CAD rises to 1.3348 this morning (the Loonie falls to 0.7491) due to the global equity sell-off and crude oil touching new two-month lows. In the absence of Canadian economic data releases, in the U.S., there are signs that manufacturing slowdown has spread to other parts of the economy. According to the latest Non-Manufacturing ISM Report On Business in the U.S., economic activity in the non-manufacturing sector grew in September for the 116th consecutive month. However, the Non-Manufacturing PMI index came in at 52.6, below expectations of 55, which is causing a sell-off of risky assets, including the Loonie. Meanwhile, U.S. President Donald Trump has blamed the stock market drop on his impeachment.
Key MoversIn the U.S., New York President John Williams said that while a snapshot of the U.S. economy looks strong, "in the rear-view mirror," going forward, "it's a much more mixed picture." The Fed kept its cautious tone with Fed Richmond and Chief Thomas Barkin, emphasizing that he is watching consumer confidence "very closely" to see if domestic and geopolitical uncertainty that has hit businesses has affected households. Nonetheless, Chicago Fed Chief, Charles Evans, was not convinced to cut rates again; he said that consumer spending and jobs are healthy, and he is open-minded about the next meeting, at which he'll vote.According to Bloomberg, the U.S. plans to impose a 10 percent tariff on aircraft from Europe and a 25 percent rate on other goods, including whiskey, wine, and cheese, from Oct. 18th. The move comes after the WTO gave it the green light to do so in retaliation for illegal government aid to Airbus. According to Bloomberg, just 29 days from the U.K.'s Brexit deadline, Boris Johnson has finally made the EU an offer for a new deal. However, the proposal seems unacceptable to the EU.
- USD/CAD: 1.3160 - 1.3385 ▼
- EUR/CAD: 1.4602 - 1.4660 ▲
- GBP/CAD: 1.6355 - 1.6602 ▲
- AUD/CAD: 0.8958 - 0.9005 ▲
- NZD/CAD: 0.8380 - 0.8426 ▲