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CAD hits two-month low

Thursday 8 July, 2021

Daily Currency Update

CAD - Canadian DollarDemand for the Canadian dollar hit a two-month low against the US dollar as oil and copper prices fell. USDCAD was up 0.56%, trading at 1.2548 at the time of writing.The disagreement between OPEC+ members continued to weigh on the price of oil, raising the possibility that the output agreement in place may be abandoned. The Canadian jobs report for June is due Friday, which could offer clues to The Bank of Canada’s policy outlook

Key Movers

The euro jumped across the board this morning after the European Central Bank announced a new inflation target of 2%. EURUSD was up 0.57%, trading back above 1.18 at the time of writing. The pound remained on the back foot against the US dollar. The FOMC meeting minutes sent GBPUSD trading back below 1.38. Without any significant data releases scheduled this week, it seems to be a case of sterling trading sideways with the majority of its peers. Events that could trigger volatility for the pound include the Bank of England’s quantitative easing program, the interest rate hike decision due on 5th August, economic forecasts, Brexit trade negotiations, and COVID-19. Yesterday’s Federal Open Market Committee (FOMC) confirmed more optimism over the economic outlook. The Fed minutes revealed that there was debate among Fed officials over how soon they would have to start easing stimulative monetary policy. But the message to see “substantial further progress” on the economic front mirrored policymakers’ recent “wait and see” stance. Overall, officials were upbeat about US economic recovery. The US Dollar Index was down 0.39%, trading at 92.27 this morning.

Expected Ranges

  • EUR/CAD: 1.4714 - 1.4901 ▲
  • GBP/CAD: 1.7206 - 1.7327 ▲
  • AUD/CAD: 0.932 - 0.936 ▼
  • USD/CAD: 1.2463 - 1.259 ▲