Home Daily Commentaries USD/CAD – losses to pick up momentum

USD/CAD – losses to pick up momentum

Thursday 24 November, 2022

Daily Currency Update

The Canadian dollar shed off steadily yesterday, losing around 90 pips into the close to retest the low-1.33s. A dip below here would open-up the room for further losses, heading into Thursday’s European session. The Canadian dollar lagged gains by the AUD/NZD and other G-10 currencies, partly because WTI oil prices came under renewed pressure. Reports that new covid cases in China rose over 31,400 encouraged selling due to fears of lower demand from China. There are no US or Canadian economic reports today on account of Thanksgiving holiday in US.

Key Movers

  • WTI crude oil, Canada’s biggest export item, licks its wounds around $77.80 while paring the biggest daily fall in two months amid the market’s mildly bid sentiment. The crude oil’s previous downside could be linked to the fears of less demand due to the coronavirus-linked lockdowns in China, as well as expectations of more supplies from OPEC+.
  • Dovish FOMC minutes.
  • US dollar opens lower, CAD underperforms

Expected Ranges

  • EUR/CAD: 1.3866 - 1.3929 ▼
  • GBP/CAD: 1.6092 - 1.6191 ▲
  • AUD/CAD: 0.8981 - 0.9027 ▼
  • USD/CAD: 1.3317 - 1.3418 ▼