The week is starting out with a slightly negative tone with U.S. stock markets and the USD, markets were responding Federal Reserve Vice Chairman Richard Clarida’s comments that interest rates won’t being back up should unemployment fall back to normal levels. One of the things that tends to keep a currency strong is interest rates, the higher the rate, the more foreign investments, in this case the Fed is predicting that rates are staying low for some time. The Canadian dollar responded positively, however, if equities continue to fall then you may see traders flattening their risk on trades which in turn may cause the CAD to weaken.
Expect a narrow range today.
Currently Close Range
USDCAD 1.3033 1.3099 1.3023-1.3114
EURCAD 1.5574 1.5591 1.5540-1.5604
GBPCAD 1.7434 1.7489 1.7380-1.7491