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CAD up ahead of Bank of Canada governor speech

Thursday 9 September, 2021

Daily Currency Update

CAD - Canadian Dollar

The Canadian dollar strengthened against the US dollar ahead of a speech by Bank of Canada Governor Tiff Macklem even as oil prices fell. USDCAD was down 0.24%, trading around 1.2658 at the time of writing. Demand for the dollar was little changed after the European Central Bank left its monetary policy unchanged as expected. The US Dollar Index was down slightly by 0.09%, trading around 92.57 at the time of writing. The euro held onto small gains against the dollar while GBPUSD bounced back after three days of losses. The USD could continue to weaken against other major currencies as positive sentiment from investors drives the market.

Key Movers

GBPUSD was up 0.51% at the time of writing, trading above 1.38 after losing ground to the dollar and the euro over the last three days. Bank of England governor, Andrew Bailey, delivered some cautiously optimistic comments yesterday, stating that he believed the minimum threshold for monetary tightening in the UK has now been successfully met and that interest rates would be pushed back up in the years to come. This comment helped boost sterling, as central banks and how they act seems to be the main focus of the markets. EURUSD was up slightly, trading above 1.18 after the European Central Bank left its monetary policy unchanged but announced that it would slow its bond purchases as inflation surged in the Eurozone.

Expected Ranges

  • EUR/CAD: 1.4864 - 1.5033 ▼
  • GBP/CAD: 1.7323 - 1.7551 ▲
  • AUD/CAD: 0.9286 - 0.9372 ▼
  • USD/CAD: 1.2506 - 1.2726 ▼