CAD strength stalling on oil and USD data
Friday 28 October, 2022
Daily Currency UpdateThe recent bump in the CAD is seeing a mild retracement this morning as oil drops about $3 a barrel from yesterday’s highs and US inflation numbers come back into focus with the release of the Personal Consumption Expenditure (PCE) numbers for September. The only piece of Canadian data today in the MoM GDP growth numbers for September which showed the Canadian economy up 0.1% from August.
Key MoversPrice action across majors was largely muted on Thursday except for the euro, which plunged back below parity following the ECB latest policy update. As expected, the ECB lifted rates by 75 basis points, but the accompanying statement suggest policy makers may adopt a more cautious and measured approach to future interest rate adjustments. The statement affirmed a growing expectation major central banks have now passed the point of “peak hawkishness”. The shift in narrative has prompted a sharp correction in global bond rates, with European bond’s leading the decline overnight. In other news, softening, there is an elevated level of uncertainty as investors remain conscious a recession in 2023 is still highly likely. Our attentions turn now to the Bank of Japan policy meeting, US labor market data, German GDP and German inflation updates as key markers leading into the weekly close.
- EUR/CAD: 1.3501 - 1.3591 ▲
- GBP/CAD: 1.5655 - 1.5728 ▲
- AUD/CAD: 0.8719 - 0.8778 ▼
- USD/CAD: 1.3499 - 1.3629 ▲