Account to Account
USD to CAD Morning Update — September 15, 2020
The Canadian dollar is up 0.2% this morning on improved global sentiment and trading right around the Interchange Financial Short Term Consensus Forecast of 1.315. The equity markets are up for a second day in a row after a volatile few prior sessions. Oil is up 0.7%, though longer term demand concerns continue to percolate. The prospect of a Biden election victory is beginning to be a risk on the horizon for Canadian oil in particular. Tomorrow’s Fed meeting is now in full focus with the expectation that the US central bank will not move rates until February of 2023. Surveys indicate that such an expectation is already baked into market pricing but if the Fed does directly communicate that fact tomorrow, the US dollar will be softer. Also tomorrow, August inflation figures will be out in Canada. While the data tends to be fickle, especially in light of the unusual circumstances, if the figure is substantially above the 0.6% forecast, we may see some firming up of the Canadian dollar.