CAD struggles to hold the position against USD
Daily Currency Update
The USD/CAD pair struggled to halt its three-day losing streak after recovering most of its intraday losses, hovering around 1.3570. The pair reached a nine-week low at 1.3541 during the Asian session. This decline can be attributed to the accommodative remarks from US Federal Reserve Governor Christopher Waller. Waller's suggestion that the Fed may not insist on maintaining high interest rates if inflation consistently declines has likely contributed to the downward pressure on the pair. Furthermore, the improved crude oil prices are strengthening the CAD. Western Texas Intermediate (WTI) oil floated around $76.60 per barrel. Oil prices are gaining momentum as the market anticipates the Organization of the Petroleum Exporting Countries (OPEC) meeting. The decisions made during this meeting will have a significant impact on oil supply dynamics.Key Movers
The US dollar index (DXY) slid further below the 200-day Simple Moving Average (SMA), which is near 103.60. While it has been low performing, the DXY can still make up for its losses if US traders come back in the market to buy during the current dip. The US real Gross Domestic Product (GDP) expanded at an annual rate of 5.2% in the third quarter. This reading came in above expectations of 5.0% and above the previous estimate of 4.9%.The EUR/USD pair traded a few pips below the 1.1000 mark, recovering ground following the release of softer-than-anticipated German Harmonized Index of Consumer Prices (HICP) data. The HICP came out up 2.3% year-over-year in November.
The GBP/USD pair traded just ahead of 1.2700. The pair failed to find any inspiration from Bank of England (BoE) Governor Andrew Bailey's hawkish comments.
In Australian news, the AUD snapped its winning streak amid downbeat Aussie monthly Consumer Price Index (CPI) data. Australia’s Monthly CPI declined by 4.9% in October against the expected 5.2%.
Expected Ranges
- EUR/CAD: 1.4897 - 1.494 ▲
- GBP/CAD: 1.7189 - 1.725 ▲
- AUD/CAD: 0.8978 - 0.904 ▼
- USD/CAD: 1.3543 - 1.3605 ▲