Home Daily Commentaries The Canadian dollar continues to increase against the USD, but not too much against other G10 currencies

The Canadian dollar continues to increase against the USD, but not too much against other G10 currencies

Monday 12 September, 2022

Daily Currency Update

The Canadian dollar is increasing for a fourth day versus the US dollar, which is weakening against nearly all of its Group-of-10 peers while oil prices rise. However, according to Statistics Canada, Canadian households have experienced a decline of almost CAD 1 trillion in net worth between April and June 2022 amid plunging prices for homes and stocks. One of the reasons might be higher interest rates. Nonetheless, households are still much better off than before the pandemic. The CAD is trading higher than the USD by 0.42%, at 1.2985 and increasing by 0.5% versus the JPY at the time of this writing. However, it is losing against the rest of the G10 currencies, falling against the Euro by 0.37% and by 0.28% versus the AUD.

Key Movers

In the UK, manufacturing production numbers came in below expectations;  industrial production also fell below forecast. However, the sterling (GBPUSD) managed to increase 0.9% at the time of this writing due to USD weakness, toward 1.1700 handle. Of course, for the EURUSD and GBPUSD to bounce, the focus today has been the Russia-Ukraine war, with the Ukraine gaining territory on the back of the potential path to reconciliation. The Bank of England meeting has been pushed back a week due to the Queen's passing, so the currency market has another week in a wait-and-see mode, which can be very optimistic, with the USD having some downward pressure.

Expected Ranges

  • EUR/CAD: 1.3106 - 1.3237 ▲
  • GBP/CAD: 1.5115 - 1.5198 ▲
  • AUD/CAD: 0.8893 - 0.8946 ▲
  • USD/CAD: 1.2966 - 1.3053 ▼