Home Daily Commentaries Market awaits BoC rate decision Wednesday

Market awaits BoC rate decision Wednesday

Daily Currency Update

Demand for the Canadian dollar was weaker this morning against the US dollar but remained up against most other major counterparts. Oil is down today about 1% to 73.61 at the time of writing. Markets are holding stable ahead of the Bank of Canada (BoC) rate decision on Wednesday.

Key Movers

The USD came out strong this morning as markets are focused on the US jobs data report later this week. Employment change numbers come out on Wednesday, jobless claims are set to be released on Thursday, and non-farm payroll and unemployment rate data will be reported on Friday. The US Dollar Index (DXY) saw a boost this morning, up 0.58%.

In European news, the German Balance of Trade came out at 17 billion, below the forecasted 17.1 billion. Monthly German Exports were reported at -0.2%, well below the anticipated 1.1% increase. Meanwhile in Spain, unemployment numbers showed a -24,600 dip after the previous 36,900 report.

Swiss inflation was also released showing a 1.4% inflation rate, below the forecasted 1.7% rate. Swiss monthly Consumer Price Index (CPI) data reported a -0.2% decrease, below the forecasted 0% change and the previous 0.1% increase. This is the result of several factors including lower prices for hotels and international holiday packages.

Expected Ranges

  • EUR/CAD: 1.4626 - 1.4736 ▼
  • GBP/CAD: 1.7058 - 1.7180 ▼
  • AUD/CAD: 0.8945 - 0.9023 ▼
  • USD/CAD: 1.3480 - 1.3562 ▲