US Dollar to Canadian Dollar (USD/CAD) Exchange Rate Trending near Weekly High on JP Morgan Profit
Having rapidly softened in the wake of an International Monetary Fund report which indicated a dramatic slowdown in global economic growth, the US Dollar has strengthened on Tuesday as a result of improved sentiment and a swing to profit for the third-largest US bank JP Morgan Chase & Co. An absence of Canadian economic data on Tuesday has seen the ‘Loonie’ (CAD) struggle amid cautious trading.
If you're looking to make an international money transfer, we recommend TorFX.
The US Dollar to Canadian Dollar exchange rate is currently trending in the region of 1.1230.
A recent report from the International Monetary Fund caused traders to adopt risk aversion strategies. However, the US Dollar didn’t capitalise on its safe-haven qualities after the report led traders to delay bets on the timing of a rate hike from the Federal Reserve.
With a lack of data to influence changes, the Canadian Dollar has steadily declined against its major peers as it tracked the downtrend of the US Dollar.
The US Dollar to Canadian Dollar exchange rate has dropped to a low today of 1.1084.
On Tuesday the US Dollar has strengthened against its most traded currency competitors. A significant contributing factor to this upsurge has been vastly improved sentiment towards the ‘Greenback’ (USD) as traders speculate that the Dollar losses weren’t warranted given recent economic data.
‘It does look as if the Dollar is coming back,’ said Jeremy Stretch, head of foreign-exchange strategy at Canadian Imperial Bank of Commerce in London. ‘If we are going to see a deceleration, the US is looking in better shape. The Dollar looks relatively well-supported.’
The US Dollar has also been boosted by the third-largest American bank, JPM, which reported a third-quarter swing to profit. Chief Executive Officer Jamie Dimon stated; ‘Despite challenges, we have continued to deliver strong underlying performance, maintain our fortress balance sheet and liquidity, simplify the business and adapt to regulatory changes.’
With a complete absence of economic data pertaining to Canada on Tuesday the Canadian Dollar has steadily softened against the majority of its rivals. A large declination has been avoided as the ‘Loonie’ tracks the progress of a stronger US Dollar.
Forecast for the US Dollar to Canadian Dollar Exchange Rate
There will be a significant number of domestic data publications with the potential to influence changes in the USD/CAD exchange rate on Wednesday.
From a US perspective the most important data publication will be Advance Retail Sales which is forecast to decline show a sales decline of -0.1% in September following the 0.6% gain recorded in August.
In terms of Canadian data, Existing Home Sales and the Teranet/National Bank HP Index will be of interest.