USD/CAD trades firm amid lower oil prices
Daily Currency Update
The USD/CAD pair remained even below the 1.35 mark amid sliding oil prices. Lower oil prices and mixed data from Canadian jobs reports have undermined the Loonie. West Texas Intermediate (WTI) crude oil dipped near the 77.631 levels this morning. The CAD was also negatively affected by slowing domestic wage growth in February at 4.9% from the 5.3% seen in January. This was the second consecutive month of slowing growth, pushing the data to its lowest level since June 2023.Key Movers
The US Dollar Index (DXY) traded just below 103 this morning with some downside likely today. Due to the US Consumer Price Index (CPI) report set to be released tomorrow, trading today has remained slow. Benchmark 10-year US Treasury notes traded around 4.05%, the lowest level in over a week. The Federal Reserve interest rate decision will ultimately shape how the USD moves forward. According to the CME Group’s FedWatch Tool, expectations to hold rates in next week’s meeting are at 96%, while chance of a rate cut are at 4%.The EUR/USD pair traded near the 1.0924 mark this morning, holding firm at the elevated levels the pair jumped to during the middle of last week after the European Central Bank (ECB) announced its decision to hold interest rates steady for the 4th consecutive meeting.
The GBP/USD hit its highest point since July 2023 on Friday ahead of the UK jobs report set to be released this week. The Bank of England (BoE) is scheduled to meet next week. The GBP/USD traded near 1.2803 this morning.
The AUD/USD pair dipped this morning to trade around the 0.6604 levels. The AUD will be guided this week by the outcome of the Australian Financial Review Business Summit set to take place tomorrow.
Expected Ranges
- EUR/CAD: 1.473 - 1.4766 ▼
- GBP/CAD: 1.7269 - 1.7349 ▼
- AUD/CAD: 0.8909 - 0.8937 ▼
- USD/CAD: 1.347 - 1.3508 ▲