Home Daily Commentaries CAD looks towards its second consecutive weekly gain

CAD looks towards its second consecutive weekly gain

Daily Currency Update

The CAD remained mostly unchanged so far today with modest gains for the week, after edging into the upper 1.36 range in overnight trading. A second consecutive weekly gain looked to be in the cards for the Loonie for the first time since mid-April. West Texas Intermediate (WTI) crude oil may have bolstered the commodity linked Loonie slightly with a rise of around 0.73% to the 81.738 range.

Key Movers

The USD came under pressure this morning despite positive data. The US Dollar Index (DXY) was down this morning by around -0.16% to sit near the 105.879 level. This slight dip from yesterday’s close of 106.049 came despite positive Durable Goods Orders data which rose in May. Durable Goods Order data measures the total value of new orders for long-lasting manufactured goods. The fresh orders for durable goods expanded by 0.1%, while economists projected a decline in this space. The struggle for the USD could be due to traders’ anticipation of Friday’s Core Personal Consumption Expenditure (PCE) Price Index which is projected to decrease year-over-year to 2.6% from the previous 2.8%. If this expectation is proven true, the inflation will show an inching closer to the Federal Reserve's preferred inflation gauge and therefore a possibility for rate cuts sooner rather than later.

The EUR/USD pair recovered to the 1.07 mark and trimmed its Wednesday losses when it bottomed at 1.0665. Demand for the US dollar lost steam throughout the first half of the day despite the market mood remaining sour. Asian and European indexes edged lower following Wall Street's poor performance. Markets are largely looking ahead to the June 30th French elections which could cause volatility in the Eurozone.

The GBP gathered some steam against the greenback; however, it traded below the weekly high of 1.2703 this morning. Like its European counterpart, markets await the upcoming July 4th UK election. The GBP/USD pair traded near 1.2652, up by around 0.25%.

Expected Ranges

  • EUR/CAD: 1.46183 - 1.46839 ▲
  • GBP/CAD: 1.72704 - 1.73401 ▲
  • AUD/CAD: 0.90960 - 0.91344 ▼
  • USD/CAD: 1.36752 - 1.37134 ▼