Home Daily Commentaries CAD declines ahead of BoC rate decision tomorrow

CAD declines ahead of BoC rate decision tomorrow

Weston Blystone
Written by
Weston Blystone

Weston Blystone

OFXpert

At OFX, Weston collaborates closely with businesses, guiding them and providing invaluable insights into foreign exchange strategies to mitigate risk effectively.

| Tuesday 9 April, 2024

Daily Currency Update

The Canadian dollar was weaker overall this morning, dipping down against the EUR, AUD, and GBP. The Bank of Canada’s (BoC) rate decision is expected out tomorrow with most of the market anticipating a hold to interest rates once again. In oil news, West Texas Intermediate (WTI) crude oil was down around 0.82% this morning near 85.72.

Key Movers

The US Dollar Index (DXY) was down this morning, around 0.16%, to trade near 103.97. This decline was seen ahead of the anticipated Consumer Price Index (CPI) inflation data set to be released tomorrow. This data release could cause USD movement and impact future rate decisions. The National Federation of Independent Business (NFIB) Small Business Index, a survey of small businesses regarding the state of the economy, came in a little lower than expected at 88.5 versus the 88.8 level that was expected. Additionally, the Real Clear Markets (RCM) and TechnoMetrica Institute of Policy and Politics (TIPP) Economic Optimism data came in lower than expected at 43.2 compared to the expected 44.2.

In Europe, the French Trade Balance data came in better than expected at -5.2 billion versus the -7 billion that was expected. The European Central Bank’s (ECB) rate decision is expected out on Thursday where they are expected to leave the rates unchanged. The EUR was up this morning versus both the USD and CAD.

In Japan news, the JPY Consumer Confidence data came in little lower than expected at 39.5 versus the anticipated 39.6. The JPY was slightly up versus the CAD and USD this morning, which could have been due to a weaker CAD and USD turnout so far today.

Expected Ranges

  • EUR/CAD: 1.4728 - 1.4764 ▲
  • GBP/CAD: 1.7168 - 1.7238 ▲
  • AUD/CAD: 0.8951 - 0.9007 ▲
  • USD/CAD: 1.3543 - 1.3585 ▲

Written by

Weston Blystone

OFXpert

Weston is on a mission to help people optimise their foreign exchange transfers. As Corporate Client Associate at OFX, he collaborates closely with businesses, guiding them and providing invaluable insights into foreign exchange strategies to mitigate risk effectively. Always eager to deepen his understanding and share his expertise with others, Weston finds great fulfilment in working with diverse individuals, nurturing their company's growth through tailored solutions.