Canadian dollar rises on oil and US inflation data
Daily Currency Update
The Canadian Dollar regained its losses from early in the week as markets headed into the weekend. US data pointing to lower inflation and oil prices rising strengthened the Loonie and helped push it upward. Oil prices continued to head back towards $80 a barrel for West Texas Intermediate (WTI) crude oil. This jump can be attributed to an uptick in demand as manufacturing and shipping rebounds.Key Movers
The US dollar was weaker heading into the weekend as the Personal Consumer Expenditure (PCE) data released this morning showed that Core Inflation was up 2.9% in December, lower than the 3% expected. This stoked hopes that the Federal Reserve may look at interest rate cuts starting in the spring.The Euro was one of the few major currencies that were down against the USD heading into the weekend. Weaker than expected consumer confidence numbers in Germany released overnight showed a drop to -29.7 from -24.5. This data paired with pressure on the Euro from markets, are working together to push the European Central Bank (ECB) into a position to cut interest rates as inflation comes back under control.
Expected Ranges
- EUR/CAD: 1.4572 - 1.4660 ▼
- GBP/CAD: 1.7084 - 1.7173 ▼
- AUD/CAD: 0.8855 - 0.8931 ▼
- USD/CAD: 1.3421 - 1.3515 ▼