CAD stable ahead of tomorrow’s rate decision
Daily Currency Update
The Canadian dollar was stable this morning as there is little movement on it against most major currencies. However, the CAD slightly up against the euro and pound. There is not much data today as the Bank of Canada (BoC) is expected to keep interest rates unchanged tomorrow. A slight decrease in crude oil prices has led to the CAD being slightly down against the USD by 0.27%.Key Movers
The US dollar index (DXY) was up by 0.57% and currently sitting at the 106.14 level. US Flash Manufacturing Purchasing Managers' Index (PMI) was slightly higher than forecast, at 50 versus 49.5. A PMI greater than forecasted is usually good for the currency. This is one of the leading indicators of economic health as businesses’ purchasing managers hold the most up-to-date insight into the company’s economic view. The US Flash Services PMI was also higher than forecast, at 50.9 versus 49.9.The overall Flash Manufacturing PMI and Flash Services PMI for Europe is down as the economic downturn looks to have accelerated. The EUR is down by 0.55% against the USD. French Flash Manufacturing PMI was lower than forecasted, at 42.6 versus 44.4 while French Flash Services PMI was higher than forecast at 46.1 versus 44.9. German Flash Services PMI was lower than the forecasted at 48 versus 50.1
The UK also experienced mixed PMI data. UK Flash Manufacturing PMI was higher than expected and Flash Services PMI was slightly lower.
Expected Ranges
- EUR/CAD: 1.4540 - 1.4616 ▼
- GBP/CAD: 1.6712 - 1.6794 ▼
- AUD/CAD: 0.8661 - 0.8738 ▲
- USD/CAD: 1.3656 - 1.3739 ▲