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Market Reacts to UK Labour Win, Biden Controversy, and Weakening US Dollar Index


05.07.2024
Market Reacts to UK Labour Win, Biden Controversy, and Weakening US Dollar Index

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

US Dollar        1.3575-1.3675

Euro                 1.4675-1.4775

Sterling            1.7350-1.7450

 

WTI Oil (opening level) $83.32

 

The US Dollar index is weaker this morning as the market returns in limited fashion from the US July Fourth holiday. As the market opens up it is digesting a massive win by the UK Labour party which will form a new government in the UK, global stock markets that are at all-time highs and a US political debate failure by President Biden that is leading Democrats to call for him to resign from the race.

 

In the UK, the Pound is actually higher as GBP.USD has traded as high as 1.2790 before pulling back a little. Investors seem to like the fact that the chaos of the ruling Conservative party has come to an end and now they will see what Labour polices will do the economy.

 

The Canadian Dollar was able to take advantage of the weaker US Dollar as USD.CAD fell to trade at 1.3600 (0.7353) before pulling back a little this morning. Once again this is not a case of strength in the Loonie as our Dollar was not able to make any gains against the other currencies so I would suggest that US Dollar buyers again look for opportunity in these kinds of drops.

 

A big day on the calendar today as we get both the US and Canadian June Employment reports, the US report is expected to show a slowing in job creation as the number of new jobs created is expected to fall below 200K which would be down from the 270K created last month. In Canada it is expected that the economy is expected to have created over 20K new jobs last month but this number is always prone to volatility. Get your orders in early as with most US banks on half-staff it may be a very volatile morning.



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US Dollar         1.3100-1.3200

Euro                 1.4300-1.4400

Sterling            1.6700-1.6800

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

US Dollar         1.2550-1.2650

Euro                 1.4750-1.4850

Sterling            1.7300-1.7400

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

US Dollar         1.2450-1.2550

Euro                 1.4700-1.4800

Sterling            1.7250-1.7350