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CAD softens against USD

Daily Currency Update

CAD - Canadian Dollar

The Canadian dollar softened against the US dollar after data showed that US producer prices increased in October. Investors were also waiting for comments by senior Bank of Canada officials. USDCAD was up 0.23% at around 1.2468 at the time of writing.

Oil prices rose for a third session amid the US lifting travel restrictions, helping boost the demand outlook for one of Canada’s major exports.

Bank of Canada Deputy Governor Paul Beaudry will give opening remarks at 12 p.m. eastern and Governor Tiff Macklem will give closing remarks at 5:45 p.m. eastern at a conference on diversity and inclusion in economics and central banking jointly hosted by the Federal Reserve Board, Bank of Canada, Bank of England, and European Central Bank.

Key Movers

The pound had recovered some of its losses it suffered against the US dollar last week when rates dropped to below 1.3500. This saw the pair trade near one-year lows. UK GDP figures are set to be released on Thursday and could act as another anchor for the pound. Following the surprise decision from the Bank of England to keep rates on hold last week, it would appear it is going to be a while before the pound rises back to above 1.3900. GBPUSD was down 0.05%, sitting around 1.3554 at the time of writing.

The Australian dollar lost ground against the US dollar on Tuesday after a rally from the previous day. The Australian dollar had given up mid-year highs in the wake of the RBA policy update last week. AUDUSD was down 0.54% trading around 0.7382 at the time of writing.

The US dollar held below recent highs on Tuesday as the focus turns to the Federal Reserve members who are out and speaking following last week’s interest rate decision. The US Dollar Index was down 0.14% trading around 93.92 at the time of writing.

Expected Ranges

  • EUR/CAD: 1.4394 - 1.4457 ▲
  • GBP/CAD: 1.6861 - 1.6908 ▲
  • AUD/CAD: 0.9192 - 0.9247 ▼
  • USD/CAD: 1.2429 - 1.2481 ▲