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CAD Falls on Risk-Off Market Mood and Crude

Posted by Joshua Schlebach on 6/24/20 9:17 AM

The CAD has fallen about half a cent and it following the drop in crude prices however trading within this week’s range. Fundamentals out of Canada were again non-existent as the Loonie is likely to trade in line with overall risk appetite as well as commodity prices. Aluminum tariffs on Canadian product into the US set to me announced later this week may put added downward pressure on the CAD.

The USD is gaining against most of the major currencies even with renewed concerns over increasing Covid cases throughout the US. California, Texas, Arizona and Florida have been recording large daily increases in virus cases which is cause for concern as economies continue to reopen. Fundamentals today were limited to second tier releases with HPI numbers missing the mark coming in at 0.2% vs. 0.3% and Crude Oil Inventories posting a slightly larger build than expected at 1.4M barrels.

The Euro is trading sideways and is fending off the USD positive sentiment on the back of impressive German IFO data released this morning. We may see retaliations against the EUR economy by the US after the EU announced plans to ban US travelers to the continent as US Covid cases do not seem to be under control.                                         

Equities

Equities are down across the board this morning: the Dow down 1.95%, the S&P down 1.69%, NASDAQ down 1.37% and the TSX down 1.41%.  Crude Oil is down 3.84% this morning ($38.82) while Gold is up 0.32% ($1,774.07).

Dow

1.95%

S&P

1.69%

NASDAQ

1.37%

 

 

 

TSX

1.41%

Crude Oil

3.84% (38.82)

Gold

0.32% ($1,774.07)

Topics: Market Update