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Canadian dollar up heading into open

Monday 5 December, 2022

Daily Currency Update

The Canadian dollar is starting the week up after beating jobs expectations on Friday.  The Canadian economy added 10,000 jobs in November beating the consensus 5,000.  With a lack of data today and tomorrow, the Canadian will be following general markets trends including a resurgence in Oil prices.  This week’s focus for the Canadian will be Wednesday with the release of the BoC’s interest rate announcement.  Currently, investors have priced in a 33% chance of a 50-point hike and 67% chance that it is a 25-point hike.

Key Movers

The USD is entering the week down against most majors as China announced a relaxation of “Covid zero” policies.  The USD lost in the Asian session and stayed down through European trading.  The USD/GBP pair especially seems overbought after the post-Truss correction.  The euro meanwhile made a 5 month high versus the USD and markets are still trying to find out what to make of Friday’s Non-Farm Payrolls beat ahead of the FOMC announcement on Dec. 14th.   Data for today includes the ISM Non-Manufacturing PMI, expected to slip from 54.4 to 53.3. The euro hit a 5-month high as China relaxed Covid restrictions overnight bringing some risk appetite back in overnight trading.  We also saw oil up overnight despite OPEC+ announcing that they will hold to the already announced production cuts of 200,000 barrels less per day.  Some had been calling for additional cuts of 50,000 barrels to keep oil prices up.  

Expected Ranges

  • EUR/CAD: 1.4137 - 1.4199 ▲
  • GBP/CAD: 1.6441 - 1.6553 ▲
  • AUD/CAD: 0.9121 - 0.9177 ▲
  • USD/CAD: 1.3386 - 1.3473 ▼