CAD dips slightly as equities restore gains
Daily Currency Update
The Canadian dollar took a dip in overnights as oil fell before a report from the Organization of the Petroleum Exporting Countries (OPEC) was released this morning showing expectations of tighter markets heading into the fall. The Loonie is regaining some of those losses but is struggling as equities trim off and investors park cash into USD treasuries. A lack of Canadian data today will mean the CAD will follow general market trends to end the week.Key Movers
The US dollar Index (DXY) was up this morning after the monthly Producer Price Index (PPI) release showed producer prices were up 0.3% last month, slightly more than market expectations. This is renewing some bets on a US rate hike as manufacturing price increases will have an impact on future Consumer Price Index (CPI) data. Equity markets are pointing toward a slightly lower open after having a strong day yesterday.The GBP was up against most major currencies this morning after the Gross Domestic Product (GDP) release for Q3 showed increased economic activity throughout the UK. The 3-month GDP average showed a 0.2% increase, beating the forecasted 0% growth.
As mentioned, oil prices edged up this morning with the benchmark West Texas Intermediate (WTI) crude price getting back over $83 a barrel. It had hit $84 yesterday before retreating overnight. A report this morning from the Organization of the Petroleum Exporting Countries (OPEC) shows an expected increase in demand amid extended production cuts. This should create a tighter market for oil heading into the end of 2023.
Expected Ranges
- EUR/CAD: 1.4746 - 1.4878 ▲
- GBP/CAD: 1.7028 - 1.7118 ▲
- AUD/CAD: 0.8754 - 0.8810 ▼
- USD/CAD: 1.3378 - 1.3542 ▲