CAD Surges and Trades at Highest Level Since February

Posted by Joshua Schlebach on 8/5/20 9:24 AM

The CAD has made considerable gains this week and is now trading at the highest level vs. the USD since February. Crude and other commodity prices have firmed and the sudden strength is perhaps a delayed reaction from last week’s positive economic data. Fundamentals today were limited to second tier Trade Balance numbers which posted a miss at -3.2B vs. -0.6B.

The USD is broadly weak and struggling against most of the G10 currencies with commodity based economies leading the advances. News was mixed this morning with ADP Non-Farm Employment Change coming up short of the 1.2M job gain that was expected at 167K. While the ISM Non-Manufacturing PMI posted a beat at 58.1 vs. 55.0.
           
The Euro is following the overall trend of the USD this morning and benefiting from a risk-positive market mood. Slightly lower than expected PMI numbers seemed to have little impact on the EUR as the main drivers seem to be overall market sentiment.

Equities

Equities are up across the board this morning: the Dow up 1.21%, the S&P up 0.60%, NASDAQ up 0.47% and the TSX up 0.70%.  Crude Oil is up 3.74% this morning ($43.26) while Gold is also up 1.35% ($2,046.41).

Dow

1.21%

S&P

0.60%

NASDAQ

0.01%

 

 

 

TSX

0.70%

Crude Oil

3.74% ($43.26)

Gold

1.35% ($2,046.41)

Topics: Market Update