Dollar kept down by risk aversion, lower oil
Friday 16 December, 2022
Daily Currency UpdateThe Canadian dollar is ending the week off against the USD as risk appetite, typically a driver of the CAD, is falling off the table. Major equities markets and commodities, including oil, are all lower going into the North American session this morning with oil falling more than $2 a barrel to $74.
Key MoversThe USD is holding gains it made yesterday against the basket of major currencies. All the major indices were down yesterday, with the Dow Jones Index falling more than 800 points. The sell-off looks to continue today as fears of recession rise. Futures markets are all pointing to a lower open. Commodities are not immune with West Texas Intermediate (WTI) Oil down over $2 barrel in early trading as well. The Euro saw a spike late yesterday, but it came back in the overnight sessions as inflation in the Eurozone came out at 10.1% against expectations of 10.0%. Core inflation matched expectations at 5.0%. The GBP is slowing the gains it has seen as of late as retail sales for November released this morning showed a -5.9% decline which was under the expected -5.6% drop.
- EUR/CAD: 1.4475 - 1.4578 ▲
- GBP/CAD: 1.6572 - 1.6777 ▼
- AUD/CAD: 0.9129 - 0.9200 ▼
- USD/CAD: 1.3595 - 1.3683 ▲