Forex Brokers Canadian Dollar up on Quiet Day

Market Updates | Written by CEP News | Jul 21 08 14:26 GMT |

(CEP News) - The Canadian dollar was making broad-based gains, except against the Australian dollar, to start the week on a high note on Monday. The Canadian dollar was down 0.0039 to 1.0210 against the Australian dollar, but up 0.138 points to 106.4850 against the yen. The euro was down 0.0017 to 1.5922 against the Canadian dollar while the pound sterling was down 0.0070 to 2.0034 against the Canadian dollar. RBC Capital Markets global head of FX strategy Adam Cole referenced the general strength of the Australian currency in its own broad-based gains this morning. "AUD shrugged off the weaker than expected Q2 PPI of 1.0%q/q, 4.7%y/y [cons: 1.6%q/q, 5.3%y/y] and was dragged high by demand for AUD/NZD. Domestically generated PPI was up a firm 1.4%q/q, 6.0%y/y," he wrote. "Today's report highlights why the [Reserve Bank of Australia] has not shown much discomfort with the current strength of the AUD." The Canadian dollar was up 0.0017 to 0.9960 against the U.S. dollar after U.S. leading indicators deteriorated 0.1% in June, as expected. In April, the index posted a 0.1% gain. The loonie ticked up 0.0004 to 0.9960 following the release before retracing the slight gains. TD Securities currency strategist Jacqui Douglas did not foresee a change to the USD/CAD's range-bound nature coming in the immediate future. "USD/CAD continues to be range-bound, moving largely in response to the USD. It looks like it's going to take something big to knock it out of its range, which we're unlikely to get this week, at least from the Canadian data," she wrote in a research note to clients. "The focus is going to be on [Canadian] CPI for June on Wednesday, where TD is looking for a below-consensus outcome, largely due to seasonal factors. However, a lower than expected number may not have the same effect this month as it typically would, since even TD's below-consensus call is for headline inflation to increase from 2.2% to 2.7%, which is an unusually large jump," she concluded. CAD/USD up 0.0017 to 0.9960. EUR/CAD down 0.0017 to 1.5922. CAD/JPY up 0.14 points to 106.49. GBP/CAD down 0.0070 to 2.0034. CAD/AUD down 0.0039 to 1.0210. All data taken at 9:16 a.m. EDT By Ryan Szporer, rszporer@economicnews.caThis email address is being protected from spam bots, you need Javascript enabled to view it , edited by Nancy Girgis, ngirgis@economicnews.caThis email address is being protected from spam bots, you need Javascript enabled to view it CEP Newswires - CEP News © 2008. All Rights Reserved. www.economicnews.ca The Copying, Broadcast, Republication or Redistribution of CEP News Content is Expressly Prohibited Without the Prior Written Consent of CEP News. A copy of CEP News disclaimer can be found at http://www.economicnews.ca/cepnews/wire/disclaimer.