CAD down ahead of BoC rate decision
Daily Currency Update
The Canadian dollar was down against the USD and most major currencies aside from the AUD. Oil was up this morning around 1% at the time of writing with West Texas Intermediate (WTI) oil trading at 73.454. While there is not much data set to be released today in Canada, the Bank of Canada (BoC) rate decision will be announced tomorrow with expectations for the BoC to hold rates steady at 5% for the third consecutive meeting.Key Movers
The US Dollar Index (DXY) continued to increase to trade near 103.86 at the time of writing. Despite the USD’s strong performance, the Institute for Supply Management (ISM) services Purchasing Managers Index (PMI) was higher than expected. The services PMI is based on a survey of purchasing managers and does not include the manufacturing industry. Additionally, Job Openings and Labor Turnover Survey (JOLTS) data was released at a lower-than-expected level.In European news, Europe’s Final Services PMI data was slightly higher than expected. Meanwhile, Europe’s monthly Producer Price Index (PPI) came in as expected.
The UK’s Final Services PMI followed suit, coming out slightly higher than expected. The GBP was up slightly against the EUR this morning.
The AUD was down this morning, around 0.9% versus the USD following the Royal Bank of Australia’s (RBA) decision to hold rates. Australian quarterly Gross Domestic Product (GDP) data is set to be released later today.
Expected Ranges
- EUR/CAD: 1.4647 - 1.4718 ▲
- GBP/CAD: 1.7086 - 1.7169 ▲
- AUD/CAD: 0.8884 - 0.8965 ▼
- USD/CAD: 1.3531 - 0.3592 ▲