Home Daily Commentaries CAD comes out strong following Macklem’s comments

CAD comes out strong following Macklem’s comments

Weston Blystone
Written by
Weston Blystone

Weston Blystone

OFXpert

At OFX, Weston collaborates closely with businesses, guiding them and providing invaluable insights into foreign exchange strategies to mitigate risk effectively.

| Thursday 2 May, 2024

Daily Currency Update

The Canadian dollar was up this morning against the EUR, GBP, and USD. This strength seemingly grew out of Bank of Canada (BoC) governor, Tiff Macklem’s speech. Macklem noted that if the BoC cuts interest rates and that weakens the CAD, that is something the BoC considers when deciding how much you need to reduce rates. In data news, the Trade Balance came in lower than expected at -2.3 billion versus 1.1 billion. Oil was down so far today around 0.32% around 78.75.

Key Movers

The US dollar was up so far today against the EUR and GBP following yesterday’s Federal Reserve rate announcement. The Fed decided to hold interest rates at 5.50% yesterday. The Federal Reserve left its policy rate unchanged and argued its policy stance is “in a good place.” In data news, the Trade Balance data came in a little below expectations at -69.4 billion versus the expected -69.5 billion. Weekly unemployment claims also came in lower than expected at 208,000 versus the expected 212,000.

In the Eurozone, the EUR Final Manufacturing Purchasing Manager’s Index (PMI) data was released, which surveys purchasing managers and asks them to rate the relative level of business conditions. The PMI data came in higher than expected at 45.7 versus 45.6. French Final Manufacturing PMI data came in higher than expected as well at 45.3 versus 44.9. Following suit, German Final Manufacturing PMI came in a little higher than expected at 42.5 versus 42.2. Despite this positive PMI data, EUR was down versus the CAD this morning.

Expected Ranges

  • EUR/CAD: 1.4641 - 1.4720 ▼
  • GBP/CAD: 1.7107 - 1.7214 ▼
  • AUD/CAD: 0.8946 - 0.8976 ▲
  • USD/CAD: 1.3700 - 1.3740 ▼

Written by

Weston Blystone

OFXpert

Weston is on a mission to help people optimise their foreign exchange transfers. As Corporate Client Associate at OFX, he collaborates closely with businesses, guiding them and providing invaluable insights into foreign exchange strategies to mitigate risk effectively. Always eager to deepen his understanding and share his expertise with others, Weston finds great fulfilment in working with diverse individuals, nurturing their company's growth through tailored solutions.