CAD continues its downward trend as oil prices drop
Daily Currency Update
The Canadian dollar weakened slightly amid significant drops in crude oil prices. West Texas Intermediate (WTI) crude oil traded at 78.36 this morning, continuing its decline seen all week. This dip in oil prices could have been due to increased fuel and crude inventories in the US, weakening demand.Key Movers
The US Dollar Index (DXY) rose 0.13% in the past 24 hours to trade near 105.15 this morning. Although US Treasury Yields increased, the rise doesn’t seem to have significantly favored the USD, with markets watching to see if there’s room for further USD strength yet today. US Treasury Yields showed the 2, 10, and 30-year yields all rose. Comments from Federal Reserve Governor Neel Kashkari seemed to help boost the USD this morning. Kashkari suggested that rate cuts in the coming month could go either way with easing or holds depending on inflation and economic health factors.In the Eurozone, the EUR/USD pair dipped to the mid-1.07 range this morning as weaker Eurozone data put downward pressure on the EUR. The April EUR Consumer Price Index (CPI) came in at 126.1, up from March’s 125.31 level. This 0.76% increase showed sticky inflation remained and has dragged the EUR down. Industrial production in Germany and Spain was also down, with German output falling 0.4% month-over-month.
The GBP/USD pair was down around 0.13% this morning to trade near 1.2492. This came ahead of the House Price data set to be released tonight which is expected to improve slightly. Markets will be eyeing tomorrow’s Bank of England (BoE) policy decision where the central bank is expected to hold rates at 5.25%. Markets are looking towards rate cuts in June and August.
In news out of Japan, the JPY was down for the third straight day and has declined 1.5% this week. The USD/JPY pair rose 0.43% to trade near 155.35 this morning. Markets are eagerly awaiting Thursday’s Bank of Japan (BoJ) release of the Summary of Opinions from the April meeting, which include the BoJ’s projection for inflation and economic growth.
Expected Ranges
- EUR/CAD: 1.47494 - 1.47870 ▼
- GBP/CAD: 1.71380 - 1.71879 ▼
- AUD/CAD: 0.901960 - 0.905660 ▼
- USD/CAD: 1.37230 - 4.37626 ▼