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Can CAD hold on to its gains?

Friday 28 May, 2021

Daily Currency Update

CAD - Canadian DollarDemand for the US dollar climbed higher against a basket of currencies this morning, boosted by yesterday’s positive employment data and a faster-than-expected rise in a key inflation indicator. This pushed USDCAD up modestly 0.19% to 1.209 at the time of writing. The Core Personal Consumption Expenditures Index, which is largely considered by the US Federal Reserve as the best measure of inflation, increased 0.7% last month. Some investors think this higher-than-expected figure could force the Federal Reserve to tighten its monetary policy, which could buoy demand for USD and weigh on CAD.

Key Movers

GBPUSD was down 0.34% against the dollar this morning, but was still trading close to a three-month high, partly due to commentary that the Bank of England could raise its interest rate earlier than planned. The pound is the second best-performing G10 currency versus the USD this year, up 3.3% year-to-date. A quicker reopening for Britain’s economy on the back of its rapid COVID-19 vaccination program could push sterling higher against the euro and the dollar.AUDUSD was down 0.64% to 0.76907 this morning after reports that Victoria was entering another seven-day full-scale lockdown. Twelve new COVID-19 cases were recorded overnight.

Expected Ranges

  • EUR/CAD: 1.468 - 1.474 ▼
  • GBP/CAD: 1.707 - 1.716 ▼
  • AUD/CAD: 0.929 - 0.936 ▼
  • USD/CAD: 1.206 - 1.211 ▲