CAD Makes Gains on Broad USD Weakness

Posted by Joshua Schlebach on 7/15/20 9:30 AM

The CAD made steady gains throughout the overnight session and continued to do so after the Bank of Canada held rates steady as expected.  In the policy decision this morning the central bank pledged to keep rates near zero until the 2% target inflation rate was met in a sustainable way.  Fundamentals were sparse elsewhere with second tier Manufacturing Sales surpassing the 9.2% forecast at 10.7%.

The USD is falling as it has the past few sessions and risks edging even lower with global hopes of a Covid vaccine continuing to grow.  Fundamental news today was positive with a slew of data points being released.  Empire State Manufacturing Index reported at 17.2 vs. 10.0, while Import Prices came in at 1.4% vs. 1.0%.  Industrial Production and Capacity Utilization Rate both bettered their respective expectations by 0.9% and 0.7%.

The Euro is making gains and benefiting from the broad based USD weakness that we are currently seeing.  Market participants are hopeful that the European Council’s meeting running from Friday through Saturday will make progress on an EU recovery package.

Equities

Equities are up across the board this morning: the Dow up 0.98%, the S&P up 1.00%, NASDAQ up 0.30% and the TSX up 1.26%.  Crude Oil is up 1.24% this morning ($40.79) while Gold is down 0.13% ($1,806.94).

Dow

0.98%

S&P

1.00%

NASDAQ

0.30%

 

 

 

TSX

1.26%

Crude Oil

1.24% ($40.79)

Gold

0.13% ($1,806.94)

Topics: Market Update