CAD holds steady ahead of BoC rate decision
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Daily Currency Update
The Canadian dollar saw little movement so far this morning, with the USD/CAD pair trading in the 1.35811 range, down about 0.05%. While there will be no notable data released today for the Canadian markets, the Bank of Canada (BoC) is set to release its interest rate decision on Wednesday. Markets seem to be uncertain about the outcome of Wednesday’s decision, but most participants expect a cut coming soon. In oil news, West Texas Intermediate (WTI) crude oil was down around 0.78% this morning to trade in the 85.89 range.Key Movers
The US Dollar Index (DXY) traded fairly flat this morning, only down around 0.07% to trade near 104.210. While there are no significant data releases expected today, markets will await March’s Consumer Price Index (CPI) data release on Wednesday. The CPI numbers are expected to show inflation rising 0.3%. Market participants are now expecting the Federal Reserve to cut rates twice this year after last week’s mixed data which showed a slowdown in services growth but unexpected strength in jobs data.In Eurozone news, German industrial production month-over-month was released at 2.1%, well above the forecasted 0.6% and previous 1.3%. The German trade balance was down to 21.4 billion, below the forecasted 25.1 billion, and the previous 27.6 billion levels. The European Sentix Investor Confidence survey came in at -5.9, better than the expected -8.3 reading, and the previous -10.5 level. The euro continued to hold steady with market attention on the European Central Bank’s (ECB) interest rate decision set for Thursday.
Expected Ranges
- EUR/CAD: 1.47105 - 1.47507 ▲
- GBP/CAD: 1.71436 - 1.71875 ▲
- AUD/CAD: 0.89220 - 0.89791 ▲
- USD/CAD: 1.35693 - 1.36166 ▼