Home Daily Commentaries CAD dips as oil and equities fall

CAD dips as oil and equities fall

Daily Currency Update

The Canadian dollar continued its struggles against the other major currencies as crude oil and equities both turn downward. Oil’s apparent inability to stretch gains beyond the recent $83 per barrel high alongside weakness in international stock markets is harming the mostly risk-positive currencies compared to their other major currency counterparts.

Key Movers

The US dollar index (DXY) was up this morning as the USD held strong amongst weaker global stock markets. The Asian and European stock markets are down to end the week and North American equities experienced a lower open today as well. This combination of dipping markets is putting global equities in a position for their worst week since March.

In the Eurozone, target inflation data for July has caused discussions about future interest rate hikes by the European Central Bank (ECB). Headline inflation was 5.3%, in line with economists’ expectations.

West Texas Intermediate (WTI) oil was down this morning, falling back under the $80 benchmark price. This is causing commodity-linked currencies like the CAD and AUD to trim off earlier gains.

Expected Ranges

  • EUR/CAD: 1.4699 - 1.4794 ▲
  • GBP/CAD: 1.7213 - 1.782 ▲
  • AUD/CAD: 0.8656 - 0.8740 ▼
  • USD/CAD: 1.3450 - 1.3571 ▲