Home Daily Commentaries CAD weakens against USD ahead of Jackson Hole

CAD weakens against USD ahead of Jackson Hole

Monday 22 August, 2022

Daily Currency Update

The Canadian dollar weakened against a broadly strengthening US dollar on Monday ahead of the Jackson Hole economic symposium this week. US Federal Reserve officials are part of the reason for the recent US dollar strength. On Friday, Federal Reserve Bank Richmond’s President Thomas Barkin said there’s a lot of time to decide on the size of the September meeting interest rate hike, adding that the Fed needs to move to tighter policy.  Should Federal Reserve Chairman Jerome Powell emphasize the pace of monetary tightening and growing concerns over an economic slowdown in his speech on Friday, the US dollar could continue to strengthen due to its status as a safe haven asset.  USDCAD was up 0.41% at around 1.3047 at the time of writing.

Key Movers

The euro weakened against the US dollar to a fresh 20-year low, falling below 0.9950 – eclipsing a prior low in July.  The past few weeks have been a challenge for the European economy, with the energy shortages pushing natural gas prices on the continent to new records, while an intensifying drought in Germany dried up rivers and made it harder to transport supplies. EURUSD was trading at around 0.99388 at the time of writing.

Expected Ranges

  • EUR/CAD: 1.2949 - 1.3048 ▼
  • GBP/CAD: 1.5317 - 1.5377 ▼
  • AUD/CAD: 1.1128 - 1.121 ▲
  • USD/CAD: 0.7666 - 0.7706 ▲