Canadian losing ground as USD strengthens
Friday 24 February, 2023
Daily Currency UpdateThe Canadian Dollar is again weaker to start the session as equities continue to underperform and the outlook increases to further rate hikes from the US Federal Reserve. All North American Markets are pointing to a lower open as traders’ price in up to 3 more hikes from the Federal reserve. Oil is a bright spot though for the CAD as its recent retracement seems to have stalled out around the $75 a barrel mark.
Key MoversThe USD is continuing to make gains this morning after Personal Consumption Expenditure (PCE) data showed prices were higher in January than the month prior. The headline number of the Fed’s preferred inflation measure came in at 5.4% up versus the previous 5.3%. The core data was up 4.7%, higher than the expected 4.3%. This loads more fuel to the expectations for further rate hikes by the Federal Reserve over the next 2-3 months and is driving USD bonds higher as a result. In Asian trading, the Japanese Yen lost some ground to other majors as the incoming BoJ Governor Ueda gave testimony to Japan’s Parliament. His remarks indicated that the plan going forwards is to continue the current path of loose policy and low rates. The Euro is ending the week off it’s high against the USD as growth in the Eurozone’s biggest economy showed a slower pace and waning confidence. The GDP Growth for Q4 came in at 0.9% year-over-year which missed the consensus of 1.1%. German consumer confidence was also weaker than expected showing a rating of -30.5 which missed the expected -30.4.
- EUR/CAD: 1.4341 - 1.4386 ▲
- GBP/CAD: 1.6266 - 1.6326 ▼
- AUD/CAD: 0.9174 - 0.9243 ▼
- USD/CAD: 1.3519 - 1.3622 ▲