Home Daily Commentaries USD/CAD maintains rates as manufacturing sales increase

USD/CAD maintains rates as manufacturing sales increase

Daily Currency Update

The USD/CAD traded fairly steady at 1.3210. Canadian month-over-month manufacturing sales increased by 1.2% in May following a 0.1% decline in April. These sales numbers are a positive sign for yet another large economy. West Texas Intermediate (WTI) crude oil prices are trending downward today after their longest streak of weekly gains since April. WTI currently trades at $75.58 a barrel as the weaker US dollar has helped push oil prices higher over the last week.

Key Movers

The US dollar index (DXY) traded mostly flat, around 99.87, after its dip over the last week. While the dollar is not making up for its recent losses at this time, positive data may be pushing the US economy toward the bright side. The US month-over-month consumer sentiment report released a higher-than-expected 72.6 versus the anticipated 70.4, and significantly higher than last month’s 64.4. This report comes from the University of Michigan and measures the consumer outlook for the economy in the near future. The upward movement in this figure is a positive sign for the US economy.

The EUR/USD pair continued to rise with several positive data points released out of the Eurozone. The euro trade balance has shrunk significantly to -0.3 billion from the -11.7 billion balance prior. This is accompanied by exports out of the Eurozone growing significantly as well showing more possible upside for the euro.

Japan has reported slightly lower-than-expected year-over-year Industrial Production data at 4.2% versus the anticipated 4.7%. While this is below analysts’ expectations, it still signifies positive growth for Japan as it is significantly better than last month’s Industrial Production dip by 0.7%.

Expected Ranges

  • EUR/CAD: 1.4699 - 1.4856 ▲
  • GBP/CAD: 1.719 - 1.7335 ▲
  • AUD/CAD: 0.8999 - 0.905 ▲
  • USD/CAD: 1.3094 - 1.3219 ▲