While markets have kept their positive tones, investors are looking like they could change their views at the drop of a hat. Nervousness seems to have an underlying tone that won’t go away until investors get a clear direction from the Federal Reserve. It seems that the Fed acknowledges that inflation is running high, but it doesn’t want to raise rates till Covid-19 is fully in check and it looks like it will be some time yet.
Currencies are generally unchanged with a negative USD bias, the Canadian dollar is a bit better based on this and with oil prices moving slightly higher.
Canada’s current account balance (on a seasonally adjusted basis) posted a $3.6 billion surplus in the second quarter, following a $1.8 million surplus in the first quarter. Prior to 2021, Canada had continuous current account deficits from the fourth quarter of 2008 until the end of 2020.
The USDCAD will likely trade in a narrow range with a positive tone to the CAD.
USDCAD 1.2608 1.2626
EURCAD 1.4870 1.4890
GBPCAD 1.7343 1.7370
*Indicative rates only