Equity markets are still moving higher, implying that investors believe that the global economies will grow even with the fourth wave, energy, base metals and agricultural products are following suit. Normally the USD would be a bit weaker when markets are like this however, U.S. investors are staying close to home with their money.
The durable goods number provided a mixed bag of information, new orders for key U.S.-made capital goods were unexpectedly flat in July amid supply constraints and a shift in demand to services, suggesting that business spending on equipment could slow in the second half after robust growth over the past year. Offsetting, business investment in equipment remains strong, orders are 18% above their pre-pandemic levels. Investment in equipment is expected to help offset cooling consumer spending and keep the economy on a solid growth path this quarter.
The Canadian dollar remains slightly weaker and will likely stay in a narrow range today, trading on the weaker side.
Currently* Close Range
USDCAD 1.2620 1.2589 1.2587-1.2643
EURCAD 1.4845 1.4796 1.4792-1.4847
GBPCAD 1.7331 1.7281 1.7281-1.7324
*Indicative rates only
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