Home Daily Commentaries Canadian markets look to GDP data and Macklem remarks

Canadian markets look to GDP data and Macklem remarks

Daily Currency Update

Bank of Canada Governor Tiff Macklem is scheduled to speak this afternoon. Last week Macklem indicated that interest rates may have peaked but the BoC would like to see inflation heading towards the 2% target before making any rate cuts. Markets eagerly await the release of the Canadian gross domestic product (GDP) data set to be released as an economic health indicator. Oil prices have eased 1% despite continued conflict in the Middle East.

Key Movers

he US dollar declined against most major trading partners this morning as the focus shifted to this week’s employment data and the Federal Reserve’s interest rate announcement on Wednesday. The US dollar index (DXY) is down 0.29% at the time of writing to 106.275.

In the Eurozone, the USD dropped 0.3% against the EUR despite the soft German Consumer Price Index (CPI) data. German preliminary inflation rates year-over-year came in at 3.8%, slightly below the forecasted 4% and the previous 4.5%. German preliminary GDP reports year-over-year were released at -0.3% which was better than the expected -0.7% dip. Additionally, Spanish flash yearly CPI data stayed steady at 3.5%, coming in below forecasts of 3.8%. The euro area final consumer confidence reported was at -17.9, the same as forecasts.

In UK news, net borrowing of mortgage debt by individuals decreased from £1.1 billion in August to £-0.9 billion in September. The GBP has been trading fairly flat ahead of the Bank of England (BoE) rate announcement on Thursday.

Expected Ranges

  • EUR/CAD: 1.4616 - 1.4682 ▲
  • GBP/CAD: 1.6755 - 1.6813 ▼
  • AUD/CAD: 0.8777 - 0.8825 ▲
  • USD/CAD: 1.3822 - 1.3873 ▼