Home Daily Commentaries CAD strong today ahead of CPI data tomorrow

CAD strong today ahead of CPI data tomorrow

Daily Currency Update

Demand for the Canadian dollar was strong this morning despite its recent struggles even amid oil’s excellent rally. The CAD is up today over the EUR, GBP, and AUD. The CAD/USD pair is down, however, at -0.18% at the time of writing. West Texas Intermediate (WTI) crude oil is down today -0.54% from Friday’s close, selling at 82.59 at the time of writing. There is no Canadian data set to be released today but markets await the Consumer Price Index (CPI) report tomorrow.

Key Movers

The US dollar index (DXY) hit a one-month high today as investors seek a safe-haven currency after weak Chinese data last week. Friday’s Producer Price Index (PPI) data also gave the USD a slight lift pushing the DXY up today by 0.53% to 103.398 at the time of writing. Today’s trading session is expected to be quiet with no data releases.

In the Eurozone, the German Wholesale Price Index (WPI) came in at -0.2% month-over-month versus the expected -0.1% and in line with the previous -0.2%. The EUR/USD pair is down -0.40% at the time of writing.

The Bank of England (BoE) is expected to hike rates again on Wednesday but could still be affected by wage and employment data tomorrow. The GBP/USD is currently down -0.25%.

The JPY fell to its lowest level since November as the market watches for Japanese government intervention. Tonight, Japan’s preliminary Gross Domestic Product (GDP), monetary policy meeting minutes, Australian wage price index quarter-over-quarter, and year-over-year production out of China is set to be released.

Expected Ranges

  • EUR/CAD: 1.46589 - 1.47397 ▼
  • GBP/CAD: 1.70121 - 1.70887 ▼
  • AUD/CAD: 0.86893 - 0.87405 ▼
  • USD/CAD: 1.34308 - 1.34763 ▼