Canadian Dollar Update, July 6, 2020 – Canadian Dollar boosted by positive risk sentiment
USD/CAD Open: 1.3546-50, Overnight Range: 1.3519-1.3563
WTI Oil is at $40.64 and gold is at $1,795.40. US markets are higher today.
For today, USD resistance is at 1.3577. Support is at 1.3518.
• Risk sentiment climbs with soaring Chinese equities
• Bank of Canada Quarterly Business Outlook survey today
• Eurozone retail sales lift EURUSD
The Canadian dollar traded aimlessly despite a jump in global risk sentiment sparked by a Chinese equity market rally. The Shanghai Shenzhen CSI 300 soared 5.7% after a front-page editorial in a newspaper trumpeted that a “bull market” was necessary to strengthen China’s position on the world stage. Other Asian equity indexes followed the Chinese lead. Japan’s Nikkei 225 rose 1.8%.
EURUSD surged through resistance at 1.1300 in Toronto trading today, powered by the rise in risk sentiment and better than expected Eurozone data. German Factory orders rose 10.4% m/m in May, after falling by 26.2% in April. Eurozone Retail Sales recouped all of its April losses, increasing 17.8% m/m in May. The news lifted EURUSD from 1.1244 to 1.1327 in Toronto. Comments from ECB board member Francois Villeroy suggesting that the French economy would rebound better than expected, also supported prices.
GBPUSD traded in a 1.3463-1.2518 range and is trading at the top in Toronto. Rising global equity markets fuel the gains. However, linger concerns around a “no-trade deal Brexit” may cap gains.
The Bank of Canada quarterly Business Outlook Survey (BOS) was conducted at the height of the COVID-19 lockdowns and the results are unlikely to be positive. The survey should not have much of an impact on USDCAD trading as it doesn’t reflect the current landscape.
The Canadian dollar continues to garner a modicum of support from steady to firm crude oil prices.
Today’s US data includes the ISM Nonmanufacturing PMI which is expected at 50.0
Today’s Suggested Range USD/CAD: 1.3496 – 1.3596
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By KBFX | July 6, 2020 | Daily Update | 0 comments