Expected USD/CAD Range: 1.037 – 1.042 Update: The Canadian Dollar is down another 0.4% overnight and trading at 1.043. The Loonie has now fallen four days in a row and…
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Expected USD/CAD Range: 1.037 – 1.042
Update: After a quiet Monday, overnight news has weakened the Canadian Dollar by 0.5% against the USD to 1.039. The Loonie is also down substantially against the Euro (1.1%). Signals from Australia’s central bank signalling a weak dollar policy have been dragging down all commodity-currencies, including the Loonie. Significantly weaker than expected Wholesale Trade Sales figures released this morning and soft commodity prices have contributed to the weakness of the Loonie. All eyes are focused on tomorrow’s release of FOMC minutes which may provide additional colour as to the timing of “tapering” by the US central bank.
The Big Picture: The commodity boom has seemingly ended (or is at least sputtering). Relatedly, Chinese and other emerging market economies have …
Implied vols have been trading below realized vols in USD/CAD since mid-July. Does this chart imply some complacency on the part of Canadian Dollar traders?
Expected USD/CAD Range: 1.030 – 1.038
Update: A quiet morning for the Canadian Dollar with no major data releases scheduled either in Canada or in the US. Unsurprisingly, there is little volatility in the exchange rate and the Loonie is trading right around Friday’s closing levels of 1.034. The focus continues in the short term to be on any news that might provide a clue as to the Fed’s decision on tapering in September.
The Big Picture: The commodity boom has seemingly ended (or is at least sputtering). Relatedly, Chinese and other emerging market economies have …