Home Daily Commentaries Canadian dollar falls as stock market rally fades

Canadian dollar falls as stock market rally fades

Friday 23 December, 2022

Daily Currency Update

The CAD is up this morning as Stocks and Oil are moving towards a positive open and Canadian GDP beat expectations. The Canadian economy showed 0.1% growth in October meeting the consensus.  In commodities markets, WTI oil is up over $2 a barrel today as demand rises in the face of winter storm throughout the US.

Key Movers

The USD Index (DXY) is down this morning as the Personal Consumption Expenditure Index (PCE) came in lower than last month at 4.7%. This matched expectations and as the Fed’s preferred measure of inflation, it shows that the Fed may have room to be less hawkish in the next rate announcement. Other data this morning showed that Durable Goods Orders fell -2.1% in November, lower than the -0.6% retraction that has been expected. The GBP is regaining some of the loses it saw yesterday overnight on the back of a weaker USD. There are concerns in England now with yesterday’s GDP data showed a -0.1% drop in Q3 meaning it could be the first of 2 quarters of negative growth that define a recession.

Expected Ranges

  • EUR/CAD: 1.4424 - 1.4488 ▼
  • GBP/CAD: 1.6384 - 1.6444 ▼
  • AUD/CAD: 0.9091 - 0.9134 ▲
  • USD/CAD: 1.3584 - 1.3682 ▲