CAD builds strength against USD
Daily Currency Update
The Canadian dollar was up against the USD this morning but down versus some other major currencies including the EUR, GBP, and AUD. Canadian monthly Consumer Price Index (CPI) data was released this morning and beat expectations. CPI data came in at 0.1% versus the expected -0.1%. The growth in CPI may bolster the CAD in the coming days. The Median CPI year-over-year data, which is the change in the median price of goods and services, as well as the trimmed CPI year-over-year, which excludes the most volatile 40% of items, were both higher than expected. Meanwhile, the yearly Common CPI, which is the change in the price of goods and services, was slightly lower than expected. Oil was up this morning around 0.7% at the time of writing also bolstering the CAD’s strength.Key Movers
Demand for the US dollar was down against many of its peers including the CAD, EUR, GBP, and AUD this morning. New residential building permits issued last month were slightly lower than expected. The dip in US building permits was overshadowed by new housing starts, which were higher than expected. The US Dollar Index (DXY) was down this morning to trade near 102.11.In Eurozone news, the EUR was up this morning against both the USD and the CAD. The European Final Core Consumer Price Index (CPI) and Final CPI data was released. This yearly report showed that prices came in the same as previous levels which was expected.
The JPY was up this morning against the USD as well by around 0.7%. The Bank of Japan (BoJ) announced their decision yesterday to keep their interest rates steady as expected by market participants.
Expected Ranges
- EUR/CAD: 1.4614 - 1.4684 ▲
- GBP/CAD: 1.6939 - 1.7052 ▲
- AUD/CAD: 0.8969 - 0.9036 ▲
- USD/CAD: 1.3329 - 1.3400 ▼