U.S. stock markets continue to move higher showing further confidence in its economic recovery. Today’s Pending Home Sales reveals an unusual summer, instead of the normal slowdown, pent up demand by buyers due to stay-at-home Covid-19 workplace, and low interest rates. Home sales would have been even higher however there is a shortage of inventory, homeowners are staying put and now are less likely to move. Companies are now less likely to transfer staff, plus they would have to provide further incentives in order to make the move.
The Canadian dollar is benefitting from the stock markets as risk averse transactions are now being flattened and traders are now moving to higher risk trades.
Expect a narrow range.
Currently Close Range
USDCAD 1,3112 1.3143 1,3102-1.3167
EURCAD 1.5507 1.5550 1.5471-1.5599
GBPCAD 1.7334 1.7364 1.7305-1.7412
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