Canadian Dollar Continues Gains as Equities Maintain Climb
Daily Currency UpdateThe CAD started the day stronger against its American counterpart but has given back some of those gains. The Canadian continues to move with general markets trends with Oil holding around $85 a barrel for WTI oil. There could be some divergence of this on Wednesday with the BoC rate announcement. The consensus is for a 50-point hike but some analysts have begun to price in a 75 point hike.
Key MoversThe USD Index (DXY) ended the week down after equities markets gained. That trend has continued this week as well. The Index was down off recent highs and that trend is continuing. Equities markets in The US are also gaining this morning, keeping the US Dollar under pressure. The S&P Global PMI index came out this morning, showing a rating of 47.3. This is under the benchmark 50 rating showing waning confidence in the US economy.
UK Bond yields are down, and the GBP has stabilized after the announcement today that Rishi Sunak will be the next Prime Minister as he has won an abbreviated contest for the Conservative Party leadership. Both of his rivals were coming up short of the required support of 100 Tory MPs.
The Eurozone PMI data this morning showed a fourth monthly decline, increasing fears of a Recession in the trading zone. Expectations of the rate announcement later this week is still sitting at a 75-point hike.
In Asia, the Communist party of China wrapped up its week-long congress re-electing Chairman Xi Jinping who moved to further consolidate his power base. It did lead though to the release of long-awaited GDP data from China, which came in up 3.9% or Q3, beating market expectations.
- EUR/CAD: 1.3436 - 1.3576 ▲
- GBP/CAD: 1.5451 - 1.5576 ▲
- AUD/CAD: 0.8621 - 0.8729 ▲
- USD/CAD: 1.3615 - 1.3760 ▼