Canadian dollar keeps pressure on USD
Monday 17 May, 2021
Daily Currency UpdateCAD - Canadian DollarThe Canadian dollar continued to put pressure on its US dollar counterpart, despite a shallow dip last week due to a small pullback in oil prices and comments from the Bank of Canada. USDCAD was down slightly at 1.209 this morning. Statistics Canada is set to release CPI data on Wednesday, a monthly report on consumer prices. Some economists are wary that the Consumer Price Index, Statistic Canada’s go-to measure of inflation, is not taking into full account Canada’s heating real estate market. The Bank of Canada aims for 2% CPI inflation as its monetary policy target.
Key MoversLater in the week, we can expect to see some major movements in the euro as manufacturing and services PMI data will be released Friday afternoon. This survey of purchasing managers in the manufacturing and services industry provides early insight into economic trends.As indoor hospitality resumes in the UK the pound remains on the front foot across a number of its G10 peers. GBPUSD climbed close to its highest level in two and a half months, holding steady 1.410 this morning.The AUD recovered from a one-week low of 0.7697 to open at 0.7782 against the USD Monday morning following less than expected US consumer spending data released Friday night. But a pullback in commodities moved AUDUSD down to 0.775 at the time of writing. The Reserve Bank of Australia will release their monetary policy meeting minutes midday Tuesday. Equity markets were firmly on the back foot last week with the Dow Jones, S&P and Nasdaq all suffering. Investors left equities and purchased US dollars. As a result, USD outperformed many of its peers, and it played a safe haven role. However, any further Fed comments away from policy tapering could see US dollar gains reversed. The US Dollar Index traded at 90.29 this morning, just above recent lows.
- EUR/CAD: 1.468 - 1.474 ▼
- GBP/CAD: 1.705 - 1.709 ▼
- AUD/CAD: 0.937 - 0.942 ▼
- USD/CAD: 1.209 - 1.213 ▼