Loonie rises on positive economic growth numbers
Daily Currency Update
The Canadian dollar was up against its US counterpart this morning. The Loonie received help from a release that showed the economy grew by 1.5% in July against the expected 1.4%. Oil prices were under further pressure this morning, continuing the losses seen yesterday. The West Texas Intermediate (WTI) benchmark price was in the $67 a barrel range this morning, down from over $70 earlier in the week. Various factors played against higher oil prices, including a resumption of exports from Libya and renewed calls for a cease-fire in the Middle East.Key Movers
The US Dollar Index (DXY) pointed down heading into the week's last trading day hitting a 14-month low of 100.57. Releases this morning showed inflation in the US slowed more than expected in August, pointing to renewed expectations for rate cuts from the Federal Reserve. The Core Personal Expenditure (CPE) data, which measures consumer spending levels on goods and services, was released this morning. Core PCE came in at 2.2% year-over-year versus an expected 2.3%. This is the Federal Reserve’s primary inflation measure, so markets weighed this as a signal that the central bank might cut rates again in November despite the presidential election 2 days earlier. Also out this morning, personal spending data came in lighter than expected. Analysts had expected a 0.4% hike in spending in August, but it only showed a 0.2% bump.The Euro fell slightly in overnight trading as unemployment in Germany came in higher than expected. The economy lost 17,000 jobs last month compared to the consensus of 12,000. The currency regained those losses and more with the US CPE data release this morning and was on the uptick so far today.
Expected Ranges
- EUR/CAD: 1.5011 - 1.5091 ▲
- GBP/CAD: 1.7996 - 1.8091 ▲
- AUD/CAD: 0.9260 - 0.9332 ▲
- USD/CAD: 1.3465 - 1.3550 ▼