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USD steady ahead of Fed minutes

Wednesday 7 July, 2021

Daily Currency Update

CAD - Canadian DollarDemand for the Canadian dollar hit a two-month low on Tuesday after oil prices were hit by a disagreement between OPEC+ members. USDCAD was up 0.41%, trading at 1.2511 at the time of writing. The US dollar was steady ahead of the scheduled release of minutes from the US Federal Reserve’s last policy meeting. Both the pound and the euro weakened against the USD. The US Dollar Index climbed 0.30% to 92.82 at the time of writing.

Key Movers

The Eurozone ZEW surveys disappointed high expectations, posting a reading of 63.4 against an estimated 75.2. The disappointing data in Europe sent demand for the euro to a three-month low against the US dollar. EURUSD was down 0.29% to 1.1786 at the time of writing.The pound fell against USD after seeing a short boost following an announcement on reopening on July 19th. But the Bank of England’s rhetoric around the lack of impact that the reopening could have on the UK economy - along with Brexit woes - pulled down demand for the currency. GBPUSD was down 0.25% to 1.3760 at the time of writing. Minutes from the US central bank, which are due later today, could offer investors new clues on the central bank’s monetary policy outlook. The mention of possible earlier than anticipated rate hikes or tapering of bond-buying could boost demand for USD. On the other hand, if the Fed shifts the narrative back to inflation and a weak jobs market, this could dampen demand for USD.

Expected Ranges

  • EUR/CAD: 1.4683 - 1.4769 ▲
  • GBP/CAD: 1.7158 - 1.7245 ▲
  • AUD/CAD: 0.9333 - 0.9363 ▲
  • USD/CAD: 1.2426 - 1.2516 ▲