USD / CAD - Canadian Dollar Extends Gains| MENAFN.COM

Saturday, 02 July 2022 05:32 GMT

USD / CAD - Canadian Dollar Extends Gains


(MENAFN- Baystreet.ca) USD / CAD - Canadian Dollar extends gains


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- Global risk sentiment improves, boosting stocks
- Better than expected UK employment data boosts GBP
- US dollar sinkns, AUD outperforms.
USDCAD Snapshot: open 1.2807-11, overnight range 1.2809-1.2852, previous close 1.2847, WTI open $114.84, Gold open $1,828.55
The Canadian dollar rallied yesterday and continued the trend overnight. It was a“risk-on” session fueled by China easing Shanghai lockdown restrictions, and rebounding equity markets.
Canadian dollar gains accelerated as oil prices surged. West Texas Intermediate (WTI) has gained over 17% in just a week and those gains are providing another layer of support to the Loonie.
Oil prices firmed following reports that the EU is close to imposing an embargo on all Russian energy. Hungary is a stumbling bloc to the plan, but traders anticipate the issues will be resolved. Prices are also supported by anticipation of increased demand from China, as lockdown measures in Shanghai ease.
Global equity markets are in rally mode. The major Chinese equity indexes led the Asian markets higher with Hong Kong's Hang Seng index closing with a 3.27% gain. The German Dax index is up 1.42%, leading a European equity index rally. S&P 500 futures are 1.55% higher pointing to a strong open on Wall Street. The weaker US dollar lifted gold prices 1.09% while the US 10-year Treasury yield is steady at 2.91%
EURUSD traded in a 1.0430-1.0555range overnight, supported by comments by ECB policymaker Klaas Knot. He said the ECB should raise rates by at least 25 basis points and leave the door open for a bigger move, depending on the data.
GBPUSD soared rising from 1.2319 to 1.2487 after a better than expected employment report raised the risk of more aggressive Bank of England tightening. The news followed on the heels of broad US dollar weakness. The intraday technicals are bullish above 1.2330 but the move is just a correction if prices fail to exceed 1.2500.
USDJPY traded in a 128.84-129.55 range. Prices ticked higher on the back of modestly higher US Treasury yields and dovish comments from BoJ Deputy Governor Amamiya.
AUDUSD jumped to 0.7039 from 0.6969, fueled by the shanghai reopening news, surging commodity prices and broad US dollar weakness. The RBA minutes opened the door to rate increases higher than the usual 0.25%.
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