Coronavirus spread raises fears of pandemic, pushing the Loonie lower.
Monday 24 February, 2020
Daily Currency UpdateCAD - Canadian DollarThe Loonie falls 0.46 percent this morning and trades at 1.3287 versus the Greenback, which is rising towards the four-month high reached last week. The main reason is the demand for safe havens as global equity plunges in overnight trading following reports that the coronavirus is spreading quickly outside of China. For now, market participants are ignoring a stronger wholesales release in Canada. According to Statistics Canada, wholesale trade reported 0.9 percent and 63.9 billion in December, following two consecutive monthly declines. This is higher than the 0.4 percent expected. Four of seven sub-sectors recorded higher sales, accounting for 63 percent of wholesale sales. The motor vehicle and motor vehicle parts and accessories subsector led the increase.
Key MoversConcerns about the impact of the coronavirus on China activity have prompted a sharp decline in global equity and oil prices. Central bankers and finance heads from the world's largest economies say they see downside risks to global growth as the coronavirus raises uncertainty. This week in North America, Fed Vice Chairman Richard Clarida will discuss the outlook for interest rates and the economy, and Bank of Canada's Lane will give a speech in Montreal. In Europe, Bank of England officials, Andy Haldane and Jon Cunliffe, will speak in London during an otherwise quiet week for the U.K. regarding economic releases. One of the most critical speeches will likely be the ECB's speech by President Christine Lagarde by the middle of the week. Last week, European Central Bank Chief Economist, Philip Lane, said that he expects the Euro-area economy to bounce back. Early today, Germany released the IFO Business Climate economic sentiment data, which came in at 96.1 versus the 95 expected. Morale rose in Germany, but the Euro was unfazed by coronavirus news.
- USD/CAD: 1.3261 - 1.3320 ▲
- EUR/CAD: 1.4370 - 1.4431 ▲
- GBP/CAD: 1.7100 - 1.7189 ▲
- AUD/CAD: 0.8750 - 0.8825 ▲
- NZD/CAD: 0.8353 - 0.8415 ▲