50-dollars-bank-notes - USD

The US dollar is little changed against the Canadian dollar on Thursday morning as Forex markets shrug off the decision by the US Senate to vote against convicting US President Trump in his impeachment. All the action can be seen in stock markets where the S&P 500 hit fresh record highs on Wednesday and Asian shares are seeing big gains after China cut tariffs on $75bn worth of US imports.

USD/CAD was higher by 1 pip (+0.01%) to 1.3278 with a daily range of 1.3273 to 1.3289 as of 8.30am GMT. The currency pair finished Wednesday essentially flat with small gains of +0.09% and has spent Thursday morning hovering around 1.328.

USD vs Canadian dollar – Optimism is picking up again in US amid strong economy performance

If stock markets are anything to go by, optimism is picking up again in the United States, thanks in part to the strong performance of the US economy. FX markets might settle down following some top draw economic data from the United States in the past few days ahead of Friday’s non-farm payrolls (NFP) release. There are some minor economic reports, including weekly jobless claims to get through before NFP, as well as the reaction from the US President to his acquittal that could create some volatility in exchange rates.

Although more muted against the Loonie (with a weekly return of +0.35%), the US dollar has performing well against a basket of currencies thanks to some impressive datapoints. In January we saw the best private jobs growth in a month since 2015 and the highest service sector activity in five months.

Canadian Dollar

It might be that the US dollar is losing some steam against the Canadian dollar after four weeks of gains on the trot. Another consideration is a pickup off the lows in the oil price thanks to speculation about an emergency OPEC meeting, where members might choose to reduce oil output with the aim of supporting prices. The Canadian dollar is affected by oil price swings because one tenth of the Canadian economy is based on the oil industry, which benefits from a higher oil price.

Currencylive.com is a news site only and not a currency trading platform.
Currencylive.com 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 currencylive.com do not represent our views.