Canadian dollar dips against most major currencies
Daily Currency Update
The Canadian dollar was weak this morning, trading lower against the USD by 0.76%. This came after the USD gained strength this morning following higher-than-expected Consumer Price Index (CPI) data. The CAD remained down against most major currencies including the EUR, USD, and GBP. However, the Loonie was up by 0.23% against the AUD this morning. The commodity-linked Loonie may gain small amounts of strength from positive oil prices today, up 0.36% this morning.Key Movers
The US Dollar Index (DXY) rose 0.65% this morning to trade near 104.811. This rise came amid the release of higher-than-expected CPI data. Monthly Core CPI numbers, which exclude food and energy data, came in above the anticipated 0.3% at 0.4%. The overall monthly CPI came in high as well at 3.1% against the expected 2.9%. With this higher than inflation data released, markets contemplate a slowing of rate cuts from the Federal Reserve. The USD gained strength to rise against the EUR, GBP, and AUD.In UK news, the British Claimant Count Change data was released, which shows the change in the number of people claiming unemployment. It came in lower than expected at 14,100 versus the expected 15,200. The Average Earnings Index for the UK, conversely, came in higher than expected at 5.8% versus the expected 5.6%. The unemployment rate for the UK came in lower than expected at 3.8% versus the anticipated 4%. This gave the GBP a boost to trade near 0.2% above the EUR for the day.
Swiss inflation data was also released today. Monthly CPI data showed a lower-than-expected inflation level at 0.2% versus an anticipated 0.6% reading. The USD was up around 1.21% versus the CHF this morning, with the CHF/USD rate trading at 1.1276.
Expected Ranges
- EUR/CAD: 1.4464 - 1.4543 ▲
- GBP/CAD: 1.6957 - 1.7093 ▲
- AUD/CAD: 0.8729 - 0.8788 ▼
- USD/CAD: 1.3433 - 1.3578 ▲