Home Daily Commentaries CAD hits 4-day losing streak against USD

CAD hits 4-day losing streak against USD

Daily Currency Update

The Canadian dollar hit its fourth consecutive day of loss against the USD this morning. The USD/CAD pair remained around the same level, trading at 1.3597. Crude oil decreased around -0.5% this morning as some experts say the Israel-Hamas conflict is unlikely to impact oil supply despite increases in prices yesterday. Markets continue to show slightly more than 50/50 odds that the Bank of Canada (BoC) will raise rates before the end of 2023.

Key Movers

The US dollar index (DXY) was down slightly today at 105.82 amid the release of the National Federation of Independent Business (NFIB) small business index, which came in slightly lower than forecasted at 90.8. New York Federal Reserve’s head of monetary policy Roberto Perli noted that Fed spending still has a ways to go and the US needs to slow or stop their spending saying, “…we remain cognizant of the risks and uncertainties ahead.” Fed member Christopher Waller is set to deliver a speech discussing "The Evolution of Monetary Policy" today at the Mercatus Center at George Mason University Conference in Washington DC.

In Australian news, the National Australia Bank (NAB) business confidence data came in the same as the previous level at 1. This index is a leading indicator of economic health. As businesses react quickly to market conditions and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment. The AUD/USD rate didn't move strongly in one direction or another since the business confidence level stayed the same as previous months. The AUD/USD pair traded near the 0.6411 level.

In the Eurozone, month-over-month Italian industrial production came in higher than expected at 0.2% versus the -0.3% drop analysts were forecasting. This is one of the leading indicators of economic health. The EUR/USD rate edged above 1.06, the best level in around two weeks. The European Central Bank (ECB) Governor Robert Holzmann noted in an interview that interest rates could be tightened more in the future.

Expected Ranges

  • EUR/CAD: 1.4344 - 1.4424 ▲
  • GBP/CAD: 1.6605 - 1.6692 ▲
  • AUD/CAD: 0.8686 - 0.8734 ▲
  • USD/CAD: 1.3572 - 1.3624 ▼