News image

Canadian Dollar Update, April 22, 2020 – Canadian Dollar rebounds

USD/CAD Open: 1.4130-34, Overnight Range: 1.4115-1.4237

WTI Oil is at $14.79 and gold is at $1,730.80. US markets are higher today.

For today, USD resistance is at 1.4185. Support is at 1.4086.

• Global risk sentiment improves despite oil market jitters
• US Senate approves new $484 billion COVID-19 aid package
• US dollar retreats as US equity futures indicate higher open on Wall Street

The Canadian dollar recouped a large part of yesterday’s losses overnight. The rally was sparked by a surprise 8.2% surge in Australia’s March Retail Sales numbers which lifted the commodity currency bloc. Australia was an early victim of the coronavirus pandemic, and the Retail Sales data pointed to large pent-up consumer demand when COVID-19 restrictions ease. Many American states have already started easing restrictions, led by Georgia, South Carolina and Tennessee.

Don't Waste Money With Banks.
Get Exchange Rates Up to 2% Better With KnightsbridgeFX

Get An Exchange Quote Now

That may be a mistake. The head of the Centers for Disease Control and Prevention warned that a second wave of COVID-19 could be worse as it would coincide with flu season.

The US Senate passed a $484 billion spending bill which increases funding for COVID-19 testing, and it brings the total US coronavirus response to nearly $3 trillion.

Oil prices remain depressed. West Texas Intermediate, the North American benchmark and Brent, the European benchmark continue to be depressed. OPEC held a conference call yesterday but didn’t agree to anything. Some members are considering implementing planned May cuts, immediately, as global storage limitations continue to weigh on prices.

EURUSD inched higher overnight, rising from 1.0846 top 1.0884 as traders await the outcome of the European Union leaders meeting on Thursday. The EU is struggling to agree to a comprehensive coronavirus stimulus package. Traders are hoping they approve the issuance of the so-called corona bond.

UK economic data releases were better than expected, which gave a modicum of support to GBPUSD, which was already rising on the back of broad US dollar weakness. UK March CPI rose 1.6% y/y as forecast, while PPI and Retail Price data was a tad better than forecast. GBPUSD climbed to 1.2384 from 1.2276.

USDJPY was directionless in a 107.53-107.86 range. Safe-haven demand for yen due to oil market jitters was offset by a rebound in 10-year US Treasury yields which climbed to 0.592% from 0.553%.

Canadian dollar direction is dictated by US dollar sentiment. For now, the modestly improved global risk tone has turned US dollar sentiment bearish, but that could change in a heartbeat, especially if Wall Street price action becomes negative.

Canadian inflation data is on tap today. March CPI is expected to drop to 1.2% from 2.2% in February.

Canadian dollar traders are likely to ignore the results as the Bank of Canada already warned that the results would be weak. There are not any US economic reports of note available today.

Today’s Suggested Range USD/CAD: 1.4080 – 1.4180

Get Started With Knightsbridge Foreign Exchange

1

Get Your Free Quote

2

Book Foreign Exchange Rate

3

Send Funds

2

3

Step 1 : Get Your Free Quote

You completed 0% of your profile.

First Name *

Last Name *

Address *

City *

Province *

Postal Code *

Phone *

Email *

Occupation *

Date of Birth *

Please provide the reason for buying or selling the currency: *

(Travel, Bills to Pay, Purchase or Sale of Investment, etc.)

Please explain how you first obtain the source of funds being sold: *

(such as: Work Income, Sale of Investment, Gift, Inheritance, etc)

Are you or any close relative a Politically Exposed Foreign Person? *

(Head of State, Member of Senate, House of Commons, or Legistrature, etc)

Yes

No

I confirm I am not transacting on behalf of a third party and I have read and I agree to the Terms and Conditions

By KBFX | April 22, 2020 | Daily Update | 0 comments