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Canadian trends down to end the week

Daily Currency Update

The Canadian dollar was down this morning against the USD as markets moved in favour of the greenback. With no data releases in Canada today, the Loonie struggled as the USD gained. Oil was up this morning with West Texas Intermediate (WTI) crude oil prices heading back towards the $80 a barrel mark. This came on the back of separate reports from The Organization of the Petroleum Exporting Countries (OPEC) and Goldman Sachs showing that oil demand should remain strong through 2024.

Key Movers

The US Dollar Index (DXY) was up more than a third of a percent to start Friday’s session as the two largest contributors to the 6 currency US Dollar Index (DXY) struggled. The euro was dealing with political uncertainty as well as an overnight release of French inflation that fed rate cut expectations. Also overnight, the Bank of Japan (BoJ) held rates as expected but fell short of market expectations for bond buybacks. On the docket today, markets will look towards the University of Michigan consumer confidence survey which is expected to rise to 72 on the index from 69 last month.

The euro continued to fall against the USD as the world’s second-biggest currency faced political uncertainty following last week’s elections. Adding to this was the snap call for elections in France this summer. Economically, inflation in France released this morning showed signs of calming with the harmonized rate coming in at 2.6%, lower than the expected 2.7%. This fed expectations of a rate cut from the European Central Bank (ECB) at its July meeting.

In Japan, the BoJ held rates at 0.1% overnight as expected. Weighing on the Yen though was the decision to hold off on pairing back the bank’s bond buyback program. BoJ members did say that they would start slowing this down in the future but that markets would have to wait until their July meeting for details.

Expected Ranges

  • EUR/CAD: 1.4693 - 1.4838 ▼
  • GBP/CAD: 1.7452 - 1.7567 ▼
  • AUD/CAD: 0.9091 - 0.9146 ▼
  • USD/CAD: 1.3695 - 1.3782 ▲