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Biden's Exit Shakes Markets: USD Dips, China Rate Cut Boosts Stocks


22.07.2024
Biden's Exit Shakes Markets: USD Dips, China Rate Cut Boosts Stocks

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.3750-1.3850

Euro                 1.4925-1.5025

Sterling            1.7750-1.7850

 

WTI Oil (opening level) $78.10

The US Dollar index is marginally weaker this morning but that is after it had a strong day on Friday. The Greenback had a muted reaction to the announcement that Biden was pulling out of the race but it did give up a little strength to start the week. The interesting overnight news was the fact the Chinese Government unexpectedly cut interest rates to support their economy, stock markets liked this move and most of them again moved higher.

 

The Canadian Dollar opens an important week weaker against the Greenback as USD.CAD broke through the top end of the recent range to trade near the 1.3750 (0.7273) level for the first time in about a month. On Wednesday we hear from the Bank of Canada on interest rates and it is fully expected that they will cut rates by another quarter point which should push the Loonie a little lower. While not a big factor a $2 drop over the weekend in the price of oil also did nothing to help the Loonie.

 

Nothing of note on the calendar today, stocks are again pointing higher this morning so the Dollar may continue to trade a little weaker. Investors will use this week to digest the news of Biden leaving the race and will now watch how fast the Democrats can rally around Harris and provide a united front.

 



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Euro                1.4625-1.4725

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Today's expected range for the Canadian Dollar against the major currencies:

US Dollar          1.3550-1.3650

Euro                 1.4600-1.4700

Sterling            1.7000-1.7100