Home Daily Commentaries Canadian dollar holds Monday’s gains

Canadian dollar holds Monday’s gains

Wednesday 11 January, 2023

Daily Currency Update

The Canadian dollar saw some retracement yesterday after strength through the previous 2 sessions. The USDCAD though seems to be moving in the favor of the dollar as the North American indices are heading towards positive opens and oil has regained $1.50+ a barrel.

Key Movers

Tuesday’s trading session was quiet as the USD searched for support from a late day speech from Fed Chair Jerome Powell.  The hope from investors was that there would be talk of monetary policy and economic outlook. This however, was avoided in the speech and so the market is left waiting for tomorrow’s inflation data where expectation for the headline CPI number is a retreat from 7.1% in November to 6.5% in December. The Euro is continuing gains against other majors as ECB officials continued a hawkish direction in various statements released. All indications are for two more 50 basis point hikes early this year. The Euro especially made ground against the GBP as the Bank of England is not expected to be as aggressive.

Expected Ranges

  • EUR/CAD: 1.4384 - 1.4434 ▲
  • GBP/CAD: 1.6241 - 1.6338 ▼
  • AUD/CAD: 0.9226 - 0.9290 ▼
  • USD/CAD: 1.3392 - 1.3443 ▼