Canadian dollar rebounds against USD
Daily Currency UpdateThe Canadian dollar strengthened the US dollar on Monday, even as oil extended its decline after plunging more than 5% on Friday. Escalating concerns whether the pace of US monetary policy tightening could lead to a recession have clouded the outlook for demand, which in turn have weighed on prices.
Despite this recent correction, West Texas Intermediate (WTI) prices – a main US benchmark in oil pricing – is still set to make record-setting gains this quarter.
The war in Ukraine has disrupted supply which has led to oil prices soaring this year and contributed to rampant inflation. USDCAD was trading at 1.2999 at the time of writing.
Key MoversEURUSD lost momentum on Monday and retreated to around the 1.05 following testimony by European Central Bank president Christine Lagarde to the Committee on Economic and Monetary Affairs of the European Parliament.
Lagarde said that the central bank expects to hike the policy rate by 25 basis points at the monetary policy meeting in July as expected. EURUSD was trading around 1.0532 at the time of writing.
The main event this week will be two days of testimony US Federal Reserve chair Jerome Powell, which is due to start on Wednesday in Washington. Again, the pace of future interest rate hikes will be the key area of focus with another 0.75% rise likely next month.
- EUR/CAD: 1.3639 - 1.3697 ▲
- GBP/CAD: 1.5887 - 1.5953 ▼
- AUD/CAD: 0.9023 - 0.9088 ▲
- USD/CAD: 1.2987 - 1.3034 ▼