Home Daily Commentaries CAD falls against strengthening USD

CAD falls against strengthening USD

Daily Currency Update

The US dollar advanced against its major counterparts on Thursday following data that showed the manufacturing sector in the US expanded at a healthy pace in August.

The Canadian dollar struggled against USD as a selloff in equities and commodities pushed oil prices down for a third straight day. 

USD has benefitted from its safe-haven status on the back of global concerns surrounding the health of European economies amid a supply chain crisis compounded by the war in Ukraine.

USDCAD was trading at 1.31818 at the time of writing.

Key Movers

Preliminary data released yesterday showed that Eurozone inflation was at 9.1%, which suggests that the single bloc, with its proximity to the war in Ukraine and the knock-on supply chain issues, has been impacted by high inflation levels similar to the US and the UK. This could support the euro in the short-term as speculation grows of the European Central Bank (ECB) having to hike rates aggressively as well to tame runaway inflation. EURUSD was trading at 0.99342 at the time of writing.  

Expected Ranges

  • EUR/CAD: 1.3095 - 1.3245 ▼
  • GBP/CAD: 1.5185 - 1.5299 ▼
  • AUD/CAD: 0.895 - 0.9012 ▼
  • USD/CAD: 1.3077 - 1.3193 ▲