Loonie gains strength against most major currencies
Daily Currency Update
The Canadian dollar saw a strong morning, trading up against most major currencies, including the EUR, USD, AUD, and GBP. While there is no notable data expected out of Canada today, Senior Deputy Governor for the Bank of Canada (BoC), Carolyn Rogers did speak about inflation. Rogers noted that “Inflation has come a long way down, we need to finish the job.” These comments may have signaled that rate cuts are not coming as soon as markets expected unless inflation data declines. Oil was down this morning around 0.05% with the day’s range between 81.61 – 82.36. This was strong compared to the last few months of oil prices, which likely helped bolster the commodity-linked Loonie today.Key Movers
The US Dollar Index (DXY) was down this morning, around 0.09%, to trade near 104.14. The US Core Durable Goods Orders month-over-month, which shows the change in the value of new purchase orders placed with manufacturers for durable goods excluding transportation items, was released. This data showed slightly higher than expected levels at 0.5% versus the anticipated 0.4%. Monthly Durable Goods Orders were also higher than expected at 1.4% versus the expected of 1.2%. The Conference Board Consumer Confidence survey, which shows the opinions of households when asked to rate the relative level of current and future economic conditions, was also released. This showed lower-than-expected data at 104.7 versus the expected 106.9. This mixed data had the USD down versus the EUR and CAD around 0.15% each this morning.In Eurozone news, the German GfK Consumer Climate data, which surveys consumers asking them to rate the level of past and future economic conditions, came in higher than expected at -27.4 versus the expected -27.9. The EUR was slightly down this morning against the CAD.
In other parts of the world, the Bank of Japan’s (BOJ) yearly Core Consumer Price Index (CPI) was released. The Core CPI, which excludes food and energy, was lower than expected at 2.3% versus 2.5%. This dip could help support claims to raise rates to reach inflation goals. The CAD was up marginally versus the JPY, around 0.07%.
Expected Ranges
- EUR/CAD: 1.4704 - 1.4739 ▼
- GBP/CAD: 1.7128 - 1.7188 ▼
- AUD/CAD: 0.8861 - 0.8898 ▼
- USD/CAD: 1.3548 - 1.3591 ▼