Home Daily Commentaries CAD holds last week’s gain off of jobs data

CAD holds last week’s gain off of jobs data

Monday 13 February, 2023

Daily Currency Update

The Canadian Dollar is holding gains even as oil drops. This is large part due to the improvement we saw Friday after a stronger than expected jobs release.  The economy had been expected to add 15,000 jobs in January but added 150,000 instead.  This led to the dollar having a positive session on Friday which is rolling into this week.

Key Movers

The USD was up against several other currencies on Friday but is now in a holding pattern to start the week. Investors are waiting to see the Consumer Price Index (CPI) release tomorrow. CPI data is expected to show decreasing price pressures. However, the question remains, will this be enough for the Fed to end rates hikes in the United States? The CPI print is expected to show a headline drop to 6.2% from 6.5% last month. The Euro saw a slight, short lived bump in early trading this morning after the European Central Bank released their growth outlook for the Eurozone. Due to the Euro Zone entering 2023 with a more positive outlook than expected, the central bank has brought their projection up to 0.9% growth for the year. The Australian dollar is facing some short-term risk as the Governor of the Reserve Bank of Australia will be testifying to Parliament about the bank’s communication (or lack thereof) with the general public about rate hikes.

Expected Ranges

  • EUR/CAD: 1.4242 - 1.4283 ▼
  • GBP/CAD: 1.6086 - 1.6164 ▲
  • AUD/CAD: 0.9222 - 0.9272 ▼
  • USD/CAD: 1.3327 - 1.3397 ▼