Canadian continues to gain on broader market movement
Tuesday 15 November, 2022
Daily Currency UpdateThe Canadian dollar has taken back everything it lost yesterday. Oil continues to be down after OPEC cut its demand forecast by 350K barrels per day for the next quarter, but the CAD is following the movement in equities for the most part. This risk positive sentiment is helping the currency along with the release this morning that manufacturing sales were flat month-over-month as compared to an expected fall of -0.5%.
Key MoversThe USD has reversed most of the gains it made yesterday against other major currencies. A lack of major US Economic data over the next week is providing little resistance to broader market trends. Also weighing on the USD is the fact that last week’s mid-term election is nearing a wrap with the Democrats taking the Senate and the Republicans closing in on a slim majority in the House. This is providing a calming effect on markets and we are seeing the futures trading up in pre-market trading. One data point this morning saw Producer Prices in the US form 8.5% inflation to 8%, driving hopes that this might carry over to future CPI prints.
Asian markets were all up in overnight markets, helping the AUD, JPY, and NZD to make gains against the USD. Optimism in most Asian markets came out of a meeting between US President Biden and Chinese President Xi Jinping ended in reports of positive conversations between the two largest economies in the world. On this, many of the commodities that drive these currencies are up with gold and copper leading the way.
The euro and GBP are both up against the USD as well this morning with the positivity from the Asian session spilling over to European trading. The euro is nearing 2 month highs. Also, helping is the ZEW Economic survey in Germany beating expectations coming in at -38.7 vs -59.7 showing that confidence in the zone’s biggest economy is turning more positive.
- EUR/CAD: 1.3702 - 1.3850 ▲
- GBP/CAD: 1.5568 - 1.5893 ▲
- AUD/CAD: 0.8884 - 0.8981 ▲
- USD/CAD: 1.3252 - 1.3326 ▼