CAD is pulled down amid USD slump
Thursday 9 February, 2023
Daily Currency UpdateUSD/CAD began the day trading at around 1.3447 but dropped below 1.3407. The US dollar’s slump is playing the dominant factor here as no data from Canada is scheduled for release today. Crude oil prices have remained near a one-week high amid optimism over a strong fuel demand recovery in China. This expectation continues to support the commodity-linked currency pair and contribute to the current downward trend in USD/CAD. The possibility of a prolonged global economic downturn may hinder crude oil prices from rising further. West Texas Intermediate (WTI) trades at around 77.630.
Key MoversThe dollar slumped significantly against a basket of major currencies on Thursday, falling below 103 as investors, motivated by the likelihood of a robust U.S. economy, invested in more speculative assets. The downward move came in tandem with soft treasury yields and unfazed markets after hawkish statements from Federal Reserve policymakers. Hawkish commentary regarding the future path of interest rates in the US did little to boost the dollar. Today's economic data focusses on the weekly Initial Jobless Claims in the US. This data published by the US Department of Labor revealed there were 196,000.00 initial jobless claims last week, a slightly worse reading than the markets' expectations of 190,000.00. EUR/USD rose from 1.0714 to 10763. Data released overnight showed the German consumer price index came in at 8.7% for January up from the previously reported 8.6%. Reports also show consumer sentiment improved in Italy and Spain while declining in France and Germany. European Central Bank Vice President, Luis De Guindos is scheduled to speak later today. GBP/USD soared above 1.2148 today, a strong increase after starting the day around 1.2071. With no economic data scheduled for the UK today, most of the pair's appreciation can be attributed to the USD’s weakness.
- EUR/CAD: 1.4386 - 1.444 ▲
- GBP/CAD: 1.6185 - 1.6316 ▲
- AUD/CAD: 0.9306 - 0.9372 ▲
- USD/CAD: 1.3374 - 1.3456 ▼