USD/CAD dips amid expectations of a BoC rate cut in June

Key Movers

The US Dollar Index (DXY) regained some ground this morning after yesterday’s minor dip. The US dollar headed back upward after surprises from the weekly Jobless Claims report and the Philadelphia Federal Reserve Manufacturing Survey. The Philadelphia Manufacturing Survey rose to 15.5 in April from 3.2 in March. This reading far surpassed expectations of 1.5. Weekly Jobless Claims data came in at 212,000 for the week ending on April 13. This was unchanged from the previous week’s level and below the forecasted 215,000 claims.

The EUR/USD pair erased some earlier gains to trade near the 1.0657 mark this morning. This dip came after European Central Bank (ECB) policymaker Francois Villeroy de Galhau noted that the ECB should plan to cut rates in the May meeting. This increased outlook for a sooner rate cut has weighed on the euro and pulled the pair lower so far today.

Like its European counterpart, GBP/USD also edged lower to trade around the 1.245 levels. Positive data out of the US and expectations that the Bank of England (BoE) may delay rate cuts until the fall months amid slower-than-expected inflation deceleration, has caused the pair to dip.