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CAD little changed after US inflation data

Friday 10 December, 2021

Daily Currency Update

The US dollar moved lower against its major counterparts on Friday following data that showed consumer prices climbed again last month. USDCAD was sitting around1.2711 at the time of writing. Inflation in the US, measured by the Consumer Price Index (CPI) rose to 6.8% in November from 6.2% on an annual basis, which was in line with economist forecasts. The month-over-month number came in 0.8% above expectations. Some analysts said investors were preparing for a higher than expected reading.

Key Movers

Demand for the pound, the euro and the Australian dollar ticked up against the US dollar after the CPI data. Next week sees the last monetary policy decisions from the US Federal Reserve, the European Central Bank and the Bank of England for 2021. It could be a volatile few days with commentary central bank policymakers, as well as more data regarding Omicron and its potential impact on world health care systems as the northern hemisphere heads into winter. EURUSD was up 0.27% at 1.3214, GBPUSD was up 0.42% around 1.3274 and the Australian dollae was up 0.37% trading at 0.7174 at the time of writing.

Expected Ranges

  • EUR/CAD: 1.431 - 1.4393 ▲
  • GBP/CAD: 1.6761 - 1.6868 ▲
  • AUD/CAD: 0.9074 - 0.9124 ▲
  • USD/CAD: 1.2687 - 1.2725 ▼