CAD turns positive on equities and commodities
Monday 27 February, 2023
Daily Currency UpdateThe Canadian dollar has joined other major currencies in making up some ground against the greenback to start the week. The USD had made interest-rate-related gains last week which seem to be calming down to start this week. This week’s key data release is tomorrow’s gross domestic product data for Q4, which is expected to show overall growth of 1.4%.
Key MoversAfter a strong week where the USD made gains globally, the dollar is starting this week down as money goes back into commodities and equities. Last week saw a readjustment of the Federal Reserve rate expectations that drove the USD up against other major currencies and risk was largely taken off the table. This week is starting more risk positive as West Texas Intermediate oil rose back over $76 a barrel and the major stock indices are all trading positively heading into the North American session. Data-wise, the durable goods orders from January painted an interesting picture. The headline number showed orders down -4.5% but this was entirely due to planes, trains, and automobiles. A deeper dive shows that the ex-transport number was up 0.7%, better than the -0.4% expected. The euro is regaining some position after falling amid USD strength last week. This seems to follow a pattern of retracement on the USD, prevalent across other currencies and equities markets. Later this week, the Consumer Price Index data will be released in the trading zone which could lead to speculation on future moves from the European Central Bank.
- EUR/CAD: 1.4330 - 1.4471 ▲
- GBP/CAD: 1.6244 - 1.6324 ▼
- AUD/CAD: 0.9105 - 0.9175 ▼
- USD/CAD: 1.3565 - 1.3624 ▲