Daily Currency Update

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CAD drops slightly following Bank of Canada comments

CAD - Canadian Dollar

Falling oil prices and comments from the bank of Canada drove demand down for the Canadian dollar. USDCAD was trading at 1.213 at the time of writing.

BoC Governor Tiff Macklem said that the central bank is closely monitoring the Canadian dollar’s gains, and to make sure further appreciation doesn’t create economic headwinds. Demand for CAD weakened following the comments, before rebounding higher in early trading this morning.

Oil prices stalled as investors focused on high COVID-19 cases in India, a top importer of oil; and as a major US pipeline operator returns to full action after a cyber attack. Colonial Pipeline paid hackers $5M in ransom, according to reports.

Key Movers

The euro climbed 0.52% to 1.214 this morning on the weaker US dollar. Sterling was also up after coming under pressure following comments from Bank of England Governor Andrew Bailey. Yesterday, Bailey suggested that interest rates would remain low for the foreseeable future, warning that he didn’t think the situation with low interest rates would change markedly. GBPUSD was up 0.31% at 1.409 this morning.

AUDUSD is slightly up this morning at 0.774, recovering modestly from losses suffered after Wednesday’s US CPI print. Investors continue to digest changing inflation expectations, while cooling commodity prices did little to drive gains.

The US dollar dipped in early trading after US Federal Reserve officials said yesterday there are no immediate plans to tighten monetary policy. Some investors expected that the surge in inflation could prompt the central bank to hike interest rates sooner than expected. The US Dollar Index moved lower 0.45% to 90.340 against a basket of major currencies this morning.

Expected Ranges

EUR/CAD: 1.464 - 1.472 ▲

GBP/CAD: 1.703 - 1.710 ▼

AUD/CAD: 0.937 - 0.941 ▼

USD/CAD: 1.208 - 1.220 ▼