GBP/AUD Riskier commodity currencies sell off as

The US dollar Canadian dollar exchange dropped lower for a fourth straight session on Thursday. The US dollar declined versus the Canadian dollar ending the session down -0.1% at 1.3154. The pair is advancing in early trade on Friday.

The dollar dropped sharply lower overnight amid improved risk sentiment. Following a landslide Conservative win in the UK elections, the pound and the euro rallied, and Brexit risks receded dragging the US dollar lower.

Prior to the UK election results, the US dollar had received a boost late in the US session after news broke that the US and China had agreed a deal in principal, which was awaiting President Trump’s sign off. The announcement came following a tweet by Trump saying that the two sides were very close to signing a big trade deal with China. Reports indicate that the terms of the deal have been agreed but the legal text has not yet been finalised.

The phase one pact is expected to reduce tariffs that have already been implemented and delay the tariffs which are due to take effect on Sunday. The Wall Street journal reported that the US was planning to cut tariffs on $360 billion worth of Chinese imports by 50%.

The outcome of the US — China trade dispute is a key determinant of economic growth in the US in 2020. Whilst recent data has shown that the labour market and consumer sector remain resilient, the manufacturing sector has experienced a deep slump. A trade deal could see the US manufacturing sector recovery relatively quickly putting the US economy on a firmer footing.

Oil Rally Supports Canadian Dollar

Oil rallied over 1% in the previous session, lifted by trade deal optimism. Crude oil pushed higher on the hope that global oil demand would improve with an end to the US — Sino trade dispute. The rally in oil supported the commodity sensitive Canadian dollar.

Bank of Canada President Stephen Poloz also hit the wires. However, he focused on the long term out look rather than near term. He expects global interest rates to remain low for years to come. His comments had little impact on the Canadian dollar.

There is no high impacting Canadian data due for release. Canadian dollar investors will continue to focus on trade headlines. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.