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CAD Continues to Rally

Posted by Joshua Schlebach on 6/23/20 9:33 AM

The CAD has furthered its gains on the back of broad based USD weakness with encouraging numbers out of economies pointing towards further recovery. No fundamentals to report on domestically will leave the Loonie likely to trade with overall market trends and sentiment. Yesterday’s speech from BoC Governor Macklem failed to provide any further insight to the future path of the central bank.

The USD is trading down against most major currencies after an overnight jump on US-China trade fears. Worldwide economic rebound optimism has weighed on the greenback into the North American open with Japan, Australia and the Eurozone posting encouraging PMI data. Fundamentals out of the US were mixed with Flash Manufacturing PMI missing the mark at 49.6 vs. 50.0, Richmond Manufacturing Index showing a slight beat at 0 vs. -3, and New Homes Sales surpassing the 637K forecast at 676K.

The Euro has extended yesterday’s gains and posted a 0.2% jump in overnight trading on the back of impressive PMI numbers. After posting daily gains yesterday for the first time in 4 sessions, it is expected that we will see relatively flat trading with strong resistance just above current levels. 

Equities

Equities are up across the board this morning: the Dow up 0.49%, the S&P up 0.81%, NASDAQ up 0.90% and the TSX up 0.72%.  Crude Oil is up 0.79% this morning ($41.05) while Gold is also up 0.59% ($1,764.80).

Dow

0.49%

S&P

0.81%

NASDAQ

0.90%

 

 

 

TSX

0.72%

Crude Oil

0.79% ($41.05)

Gold

0.59% ($1,764.80)

Topics: Market Update