Home Daily Commentaries CAD advances as USD rally loses steam

CAD advances as USD rally loses steam

Thursday 25 August, 2022

Daily Currency Update

The Canadian dollar strengthened slightly against the US dollar ahead of US Federal Reserve officials gathering at the annual Jackson Hole Economic Symposium.  Canadian factory sales fell 0.9% in July compared to June, according to an early estimate by Statistics Canada. Oil prices held on to gains on Thursday, on the back of falling US stockpiles and the possibility that OPEC+ could cut output.  USDCAD was trading at 1.29225 at the time of writing.

Key Movers

EURUSD retreated again on Thursday morning, even after Germany – the Eurozone’s biggest economy – reported that Q2 GDP increased by 1.7% annually, which was higher than economist expectations of 1.4%. EURUSD was trading at 0.99749 at the time of writing.  The Bank of England could be forced to reassess the pace of their rate hikes due to surging gas prices. Markets are currently pricing in a total of 170 basis points of interest rate hikes by year-end in an effort to curb soaring inflation. GBPUSD was trading at 1.1815 at the time of writing.

Expected Ranges

  • EUR/CAD: 1.288 - 1.2972 ▼
  • GBP/CAD: 1.5275 - 1.5342 ▼
  • AUD/CAD: 0.8955 - 0.9019 ▲
  • USD/CAD: 1.2899 - 1.2998 ▼