Home Daily Commentaries CAD rises against some peers following higher-than-expected GDP data

CAD rises against some peers following higher-than-expected GDP data

Weston Blystone
Written by
Weston Blystone

Weston Blystone

OFXpert

At OFX, Weston collaborates closely with businesses, guiding them and providing invaluable insights into foreign exchange strategies to mitigate risk effectively.

| Thursday 1 August, 2024

Daily Currency Update

The Canadian dollar was up against the EUR and GBP so far today following higher than expected Gross Domestic Product (GDP) yesterday. Canada’s May GDP data, which measures the monetary value of final goods and services, was reported to be stronger than expected, with a growth rate of around 2.2%. Markets will be looking ahead to trade balance data which will be released on Tuesday. West Texas Intermediate (WTI) crude oil was down so far today by around -0.35% to the 77.56 level.

Key Movers

The US Dollar Index (DXY) was up by around 0.08% this morning to 104.18 amid a mix of positive and negative data out of the US. The Institute for Supply Management (ISM) Manufacturing Purchasing Manager’s Index (PMI), which measures the prevailing direction of economic trends in manufacturing, came in lower than expected at 46.8 versus 48.8. Meanwhile, the ISM Manufacturing Prices data came in higher than expected at 52.9 instead of the expected 51.9. With this mixed data and the Federal Reserve’s decision to hold interest rates as expected, the USD moved very little. The USD was up versus EUR, CAD, and GBP so far today.

In the Eurozone, the Final Manufacturing PMI data was released today. It came in slightly higher than expected at 45.8 versus the 45.6 that was anticipated. The EUR was down against the USD and CAD so far today.

The GBP saw movement following the first reduction in interest rates from the Bank of England (BoE) since March 2020. The BoE decided to cut the official bank rate from 5.25% to 5.00%, as expected. After the rate cut, the GBP was down versus the EUR, USD, and CAD. GBP Final Manufacturing PMI was also released, coming in higher than expected at 52.1 versus 51.8.

Expected Ranges

  • EUR/CAD: 1.4894 - 1.4960 ▼
  • GBP/CAD: 1.7631 - 1.7759 ▼
  • AUD/CAD: 0.9008 - 0.9053 ▼
  • USD/CAD: 1.3794 - 1.3836 ▲

Written by

Weston Blystone

OFXpert

Weston is on a mission to help people make the most out of their foreign exchange transfers. As Corporate Client Associate at OFX, he collaborates closely with businesses, guiding them and providing invaluable insights into foreign exchange strategies to mitigate risk effectively. Always eager to deepen his understanding and share his expertise with others, Weston finds great satisfaction in working with diverse individuals providing currency risk management strategies.