Loonie gains strength amid oil price rally
Monday 8 May, 2023
Daily Currency UpdateThe USD/CAD pair is sitting at a key support level of 1.335, just 1 cent above lows hit back in November of last year. However, the commodity linked Loonie has been pushed higher amid the rise in oil prices. West Texas Intermediate (WTI) crude oil rallied to over $73 a barrel today, aiding the CAD and other major currencies.
Key MoversThe US dollar continues to weaken after the Federal Reserve raised interest rates by 25 basis points last week. The dollar index (DXY) is sliding downward towards the lower bounds of 100. In the banking sector, PacWest and other US regional bank stocks rally as banking volatility seemingly stabilizes. Today, stocks are showing in the red overall. Amid this bit of positive news, market participants are eagerly awaiting the Consumer Price Index (CPI) numbers set to be released on Wednesday. Analysts suggest that the CPI data may indicate the need for future Fed rate hikes. US final wholesale inventories data remained virtually unchanged month-over-month.
EUR/USD is sitting steady near the 1.1017 range at the time of writing. In the Eurozone, Germany’s month-over-month industrial production data came in below expectation at -3.4%. Denmark reported a similar drop in manufacturing production numbers month-over-month at -2.3%.
The AUD/USD pair is up, currently sitting at the 0.679 levels. Data releases in Australia overnight will feature the Westpac Consumer Confidence Index. This release is expected to show a drop in consumer confidence at -1.7 versus the last deviation of 2.94659.
- EUR/CAD: 1.4766 - 1.4696 ▼
- GBP/CAD: 1.6918 - 1.6842 ▼
- AUD/CAD: 0.902 - 0.9068 ▲
- USD/CAD: 1.3387 - 1.3315 ▼