Canadian dollar gets a boost from USD inflation
Tuesday 13 December, 2022
Daily Currency UpdateThe Canadian dollar is following equites and commodities up this morning and is gaining ground against the Greenback. Following a better than expected CPI release this morning south of the border, stock markets and commodities including oil are all up ahead of the open. With a lack of Canadian data this week, the dollar is likely to follow broader market trends.
Key MoversThe USD is falling on Tuesday morning after the release of the CPI inflation number for November came in lower than economist expectations and materially lower than what we saw in October. Headline inflation showed prices a 7.1% rise in costs, better than the 7.7% we saw last month and beating the 7.3% markets expected. Core inflation was 6%, improving over the 6.3% from last most and lower than the consensus 6.1%. This has seen West Texas oil up $150 a barrel and future markets are all up significantly leading into the North American Session. This now sets the stage for the release of the FOMC interest rate announcement tomorrow. The Euro and GBP remained flat against the USD in the overnight sessions. Inflation in Germany came in at the expected 10%, which may force the hand of the ECB for their interest rate announcement on Thursday. Employment numbers shocked to the upside showing that the British economy added 27000 jobs last month rather the expected shedding of -17000.
- EUR/CAD: 1.4373 - 1.4453 ▲
- GBP/CAD: 1.6691 - 1.6821 ▲
- AUD/CAD: 0.9192 - 0.9295 ▼
- USD/CAD: 1.3535 - 1.3678 ▼