Home Daily Commentaries CAD lower than USD amid choppy oil prices

CAD lower than USD amid choppy oil prices

Wednesday 24 August, 2022

Daily Currency Update

Demand for the Canadian dollar was lower than the US dollar on Wednesday as the market assessed choppy oil prices and lower than expected domestic data. Canadian wholesale trade fell 0.6% in July from the month prior, according to an early estimate by Statistics Canada. The number was driven by lower sales of motor vehicle and vehicle parts. The market is anticipating a speech by Federal Reserve Chair Jerome Powell on Friday that could signal whether the US central bank will remain on its aggressive plan to raise rates in a bid to curb inflation or start to pivot from its monetary policy. USDCAD was trading around 1.29707 at the time of writing.

Key Movers

The euro rebounded against the US dollar on Tuesday, touching parity again following the release of US PMI data that showed the US private sector continued to contract in August. EURUSD was trading at 1.00059 at the time of writing. GBPUSD also staged a recovery on the back of a slightly softer dollar and despite data that showed a contraction in the UK manufacturing sector, which dropped to 46.0 from 5.21 the previous month. UK services PMI printed a figure of 52.5, better than the forecast of 51.5. GBPUSD was trading around 1.1867 at the time of writing.

Expected Ranges

  • EUR/CAD: 1.2893 - 1.2972 ▲
  • GBP/CAD: 1.53 - 1.535 ▼
  • AUD/CAD: 0.8953 - 0.8991 ▼
  • USD/CAD: 1.2947 - 1.3012 ▲