<img src="https://certify.alexametrics.com/atrk.gif?account=HSBGm1akGFL1WR" style="display:none" height="1" width="1" alt="">

Canadian dollar update – Thursday July 9, 2020. If it's too good to be true, it probably isn't.

Canadian dollar update – Thursday July 9, 2020. If it's too good to be true, it probably isn't.
Arif Harji
by Arif Harji on July 09, 2020


FX & market recap:

Global stock markets are grinding out gains with traders seemingly oblivious to renewed coronavirus risks, especially in the US. Today’s headlines are like those seen in April reporting protective supply shortages, and intensive care beds nearing capacity in many states. There were 62,571 new cases reported yesterday.

Chinese equity traders do not care about US/China tensions or America’s COVID-19 problems. The are buying stocks incessantly. China’s Shanghai Shenzhen CSI 300 index climbed 1.40% today and is up 16.2% in July. The other Asia equity indexes closed higher as well. European bourses are mixed while S&P 500 futures are flat. Gold (XAU/USD) rallied again, and traders are targeting $1,800/ounce.

FX traders are looking for fresh guidance from today’s weekly jobless claims data. Weekly claims are expected to decline to 1.375 million from 1.427 million last week. Traders may see the data as evidence the US economy is bouncing back from the impact of COVID-19 measures, and continue to buy the so-called “risk assets”, which include the commodity currency bloc.

Canadian dollar highlights:

USD/CAD ignored the news of the ballooning budget deficit and the jump in total Federal debt to $1.0 trillion. Perhaps traders were relieved when the economic savant, paragon of politics, Justin Trudeau said: “We took on debt, so Canadians didn’t have to.” He may be a tad confused as to the source of funds used for government expenditures. USD/CAD is tracking Wall Street price action and US dollar sentiment. Domestic influences don’t count. But they will. Arguably USD/CAD is in the buy zone.

Euro highlights:

EUR/USD tested 1.1370 resistance and then promptly rejected further gains. Prices dropped to the overnight low in early NY trading, in part because S&P 500 futures turned negative, and because of US COVID-19 concerns.

British pound highlights:

GBP/USD is sitting in the middle of its overnight 1.2603-1.2365 overnight range. Traders are mildly positive following yesterday’s mini UK budget and have shrugged off worries about UK/EU trade talks.

Asia Pacific highlights:

USD/JPY traders are not ignoring the resurgence of coronavirus in the US. Safe-haven demand for yen and soft US Treasury yields are weighing on prices. Meanwhile AUD/USD and NZD/USD are tracking broad US dollar moves and dropped alongside the dip in EUR/USD.


Canadian dollar update – Thursday August 6, 2020. US dollar opens flat ahead of tomorrow's non farm payrolls.

Canadian dollar update – Thursday...

Canadian dollar update – Wednesday August 5, 2020. Gold soars, greenback sinks.

Canadian dollar update – Wednesday...