Equities continue to trade at recent highs and commodities, particularly oil are trading higher as well, investors believe that the global economy can survive even the recent burst in Delta variant cases. Demand for oil and other energy products has increased giving reason that Western economies can and will do a lot better. The Canadian dollar has strengthened against the USD and will likely trade below the 1.2500 level in the near term, however tomorrow the U.S. CPI number is released, expectations of a lower number than July will improve market sentiment. June’s number was 0.9%, while July is anticipated to be 0.5%, if it comes in a lot higher, expect a bit of a selloff, reason being that the U.S. Federal reserve might hike rates.
We shall have to wait and see.
Currently Close Range
USDCAD 1.2525 1.2574 1.2520-1.2589
EURCAD 1.4685 1.4758 1.4682-1.4771
GBPCAD 1.7338 1.7407 1.7342-1.7437
*Indicative rates only