Home Daily Commentaries CAD retreats a little as oil prices dip

CAD retreats a little as oil prices dip

Daily Currency Update

CAD - Canadian Dollar

The Canadian dollar softened against the US dollar on Thursday as oil prices fell on Thursday. USDCAD was up 0.21%, trading at 1.23433 at the time of writing.

Oil prices fell from a seven-year high amid a strong USD and a broad retreat from commodities.

Investors are also assessing the effect of red-hot inflation on the economy ahead of The Bank of Canada’s policy outlook next week.

CAD also edged a little lower against EUR and GBP. EURCAD was up 0.18% at 1.4373 while GBPCAD was up 0.15 at 1.7052 in midday Toronto trading.

Key Movers

EU annual inflation was confirmed at 3.4% YoY in September, the core annual reading printed at 1.9% which validates the European Central Bank’s wait-and-see stance when it comes to changing monetary policy. EURUSD was down 0.07% trading at 1.6399 at the time of writing.

The UK Consumer Price Index’s 12-month rate came in at 3.1% in September compared to 3.2% recorded in August, missing expectations. Meanwhile, the core inflation gauge retreated to 2.9% from 3.1% in August. GBPUSD reversed its direction from Tuesday’s highs and fell below 1.3800 on Wednesday following the UK’s inflation data. However, it did rebound slightly during the New York hours. The probability of a rate hike before the end of the year stays unchanged, suggesting that the recent decline in GBPUSD is a correction rather than a reversal of direction. GBPUSD was trading around 1.3811 at the time of writing.

The US dollar was little changed against a basket of major currencies after data showed that weekly jobless claims fell to a fresh pandemic-era low. The US Dollar Index was up 0.07% trading at 93.62 at the time of writing.

Expected Ranges

  • EUR/CAD: 1.4338 - 1.4373 ▲
  • GBP/CAD: 1.7001 - 1.7047 ▲
  • AUD/CAD: 0.9225 - 0.9278 ▼
  • USD/CAD: 1.2294 - 1.2345 ▲