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CAD boosted by upbeat GDP data

Tuesday 1 February, 2022

Daily Currency Update

The Canadian dollar benefitted from the weakening dollar on Tuesday and upbeat GDP data. Canada's economy grew by 0.6% in November 2021, bringing it 0.2% above its February 2020 level pre-pandemic. USDCAD was trading at 1.26889 at the time of writing. The US dollar was unable to hold onto its gains from last week, despite all the buzz around numerous interest rate hikes in 2022. However some analysts say that there could still be some positive movement for USD over the next few months. There is speculation of five rate hikes over the course of this year, starting potentially with a 50bp hike at the March US Federal Reserve meeting. The US Dollar Index was down 0.04%, sitting at around 96.50 at the time of writing.

Key Movers

The pound climbed to a weekly high against the US dollar on Tuesday, boosted by economic data and expectations of rate hike by the Bank of England on Thursday. The UK's manufacturing sector remained resilient in January. The manufacturing PMI decreased slightly to 57.3 in January from 57.9 in December, however the January number beat economist expectations. GBPUSD was up 0.46%, trading at 1.3505 at the time of writing. The euro also edged modestly higher against the dollar on Tuesday, sitting at around 1.12409 at the time of writing.

Expected Ranges

  • EUR/CAD: 1.4234 - 1.4325 ▼
  • GBP/CAD: 1.7047 - 1.7163 ▲
  • AUD/CAD: 0.8948 - 0.9028 ▲
  • USD/CAD: 1.2658 - 1.2724 ▼