Home Daily Commentaries Loonie makes minor gains after last week’s losses

Loonie makes minor gains after last week’s losses

Daily Currency Update

The Canadian dollar made minor gains this morning, making up for some of its losses last week. The USD/CAD pair traded at 1.3769 this morning. In data news, Canadian Manufacturing Sales month-over-month came in as expected at 0.7%, above the previous 0% reading. Monthly Wholesale Sales conversely showed worse than expected data at 0%. These were forecasted at 0.8% and the previous level came in at -0.2%. Oil was down this morning around 0.67% near 84.85 this morning.

Key Movers

The US Dollar Index (DXY) continued to trade strong this morning after hitting a 5-month high on Friday. The DXY was up 0.15% this morning to trade near 105.12. Retail sales data helped boost the USD with Core Retail Sales month-over-month, which excludes automotive sales, coming in better than the expected 0.5% and previous 0.5% at 1.1%. Monthly retail sales came in at 0.7%, better than the expected 0.4% but worse than the previous 0.9%. In other data news, the Empire State Manufacturing Index, a monthly survey of manufacturers in New York to rate the relative level of business, came in much worse than expected at -14.3. The anticipated level was -5.2 and the previous was -20.9. Business inventories came in higher-than-expected month-over-month at 0.4%with the forecast and previous being 0.3% and 0% respectively. Finally, the National Associate of Home Builders (NAHB) Housing Market Index (HMI), which is a monthly survey to read the pulse of the single-family housing market, remained unchanged at 51.

In Eurozone news, the monthly industrial production data came in, as expected, at 0.8%, well above the previous -3%. The EUR/USD pair was down around 0.15% this morning to trade near 1.0626. The euro fell to a 4-month low in recent days against the USD.

The euro’s UK counterpart found a similar fate against the strong USD. The GBP/USD pair was narrowly up this morning about 0.03%, trading near 1.2447. This slight rise followed the GBP’s recent dip to a 4-month low against the USD.

Expected Ranges

  • EUR/CAD: 1.46117 - 1.46655 ▼
  • GBP/CAD: 1.71232 - 1.71707 ▲
  • AUD/CAD: 0.88784 - 0.89261 ▼
  • USD/CAD: 1.37251 - 1.37816 ▼

Written by

Melanie Scott

OFXpert

Fascinated by the mechanisms that shape financial markets and their impact on currencies, Melanie is passionate about understanding how different factors shape market movements, and deciphering what these fluctuations signify for different currencies. As a Corporate Client Associate at OFX, she works closely with businesses across North America, offering them insights into foreign exchange strategies aimed at mitigating currency risks.