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CAD dips as copper prices fall

Tuesday 15 June, 2021

Daily Currency Update

CAD - Canadian DollarDemand for the Canadian dollar against the US dollar dipped, as copper prices dropped and economic data from the US gave USD a slight boost. USDCAD was up 0.25%, trading at 1.2173 at the time of writing. Another notable move this morning was CAD weakening against the euro. EURCAD was up 0.36% at 1.4768 at the time of writing. An early estimate from Statistics Canada showed producer prices in Canada rose by 3.1% in May from April, pushed higher primarily by softwood lumber. Data on Canadian consumer prices is due tomorrow, which could offer clues on the Bank of Canada policy outlook.Copper prices fell 3.6% as some analysts think China, a top consumer of copper, would move to curb further price rises. Oil was up 1.3%, with investors optimistic that demand will continue to grow in the second half of the year as travel starts to open up in other parts of the world.

Key Movers

The euro continued to trade at the low 1.21 range after the release of the US data. EURUSD was up 0.5% at 1.2126 at the time of writing. Eurozone industrial output jumped to 0.8% month on month, with an expected figure of 0.4%, suggesting a broadening of the economic recovery, particularly in the manufacturing sector. This gave the euro some momentum, but the currency could mainly take its cues this week from the US dollar.The pound fell to a one-month low against the US dollar, moving below 1.41. GBPUSD was down 0.17% at 1.4083 at the time of writing. The delay in the UK’s reopening from lockdown restrictions continued to weigh on the currency, despite upbeat UK jobs numbers. Demand for the US dollar picked up slightly after economic data supported rising inflation. US retail sales missed expectations while producer prices climbed to a record number year-over-year. The US Dollar Index edged up marginally higher, moving up 0.01% to 90.54 at the time of writing.

Expected Ranges

  • EUR/CAD: 1.4708 - 1.4772 ▲
  • GBP/CAD: 1.7118 - 1.7166 ▲
  • AUD/CAD: 0.9349 - 0.9382 ▲
  • USD/CAD: 1.2132 - 1.2196 ▲