CAD holds position as BoC eyes rate hikes
Friday 19 May, 2023
Daily Currency UpdateThe CAD is up against the USD in early trading today, largely due to the oil price movements. West Texas Intermediate (WTI) crude oil is over $73 a barrel. Canadian retail sales data released showed a decline of -0.3% in March as expected by analysts. Traders are continuing to look to see if the Bank of Canada changes rates after the higher-than-expected inflation numbers this week.
Key MoversThe US dollar index (DXY) is up 2.2% in the last two weeks and continues to eye gains. This is the strongest 10-day performance streak the USD has seen since September 2022. Amid positive DXY movement, there are also whispers in Washington that Congress may be close to a deal on the debt ceiling issue. No other major US data is set to be released today however Federal Reserve Chair, Jerome Powell, is expected to speak today. His remarks could impact markets if it appears that the Fed may change the rate hike outlook.
The eurozone saw German producer prices increase by 0.3% month-over-month, much stronger than the -0.2% that was expected by market analysts. The Euro is approaching an area of resistance against the USD and traders continue to eye the sustained bounce made during the European session.
- EUR/CAD: 1.4521 - 1.4610 ▲
- GBP/CAD: 1.6717 - 1.6816 ▲
- AUD/CAD: 0.8912 - 0.8994 ▲
- USD/CAD: 1.3450 - 1.3522 ▼