Home Daily Commentaries CAD weakens against the dollar

CAD weakens against the dollar

Daily Currency Update

The Canadian dollar struggled against the US dollar on Thursday following the release of a report on financial stability by the Bank of Canada and new COVID-19 lockdown measures in parts of Shanghai weighed on oil prices. Central bank policymakers are focused on Canadians vulnerable to high borrowing costs - especially heavily indebted homeowners - as higher interest rate hikes loom. USDCAD was up 0.62% trading around 1.26332 at the time of writing.



Key Movers

Demand for the euro against the US dollar retreated on Thursday following comments from the president of the European Central Bank. Christine Lagarde said the central bank is planning a series of interest rate hikes in the coming months, however didn't commit to a 50-basis-point increase in September. EURUSD was trading around 1.0662 at the time of writing. USDJPY has reached the 134.00 mark, its highest level in over two decades. All eyes will be set tomorrow for the Consumer Price Index excluding food and energy for the year on year and month on month for May. It is also expected that the US Federal Reserve will be raising its benchmark funds rate by 50 basis points on Wednesday next week and potentially again in July. USDJPY was sitting around 134.18 at the time of writing.

Expected Ranges

  • EUR/CAD: 1.3445 - 1.3536 ▲
  • GBP/CAD: 1.5718 - 1.5853 ▲
  • AUD/CAD: 0.8991 - 0.9046 ▼
  • USD/CAD: 1.2521 - 1.2643 ▲