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CAD shows a subdued outlook ahead of a week full of data releases
Daily Currency Update
The CAD showed minimal movement over the last week, however with a slew of data releases this week that could spark volatility for the USD/CAD pair, markets are watching closely for movement. Among these data releases include Canadian Consumer Price Index (CPI) data, Unemployment Claims in the US, and monthly Retail Sales for both the US and Canada. Monthly Manufacturing Sales data was released this morning at lower-than-previous levels. The results came in at 0.4% compared to last month’s release of 1.4%. This could be an indicator of poor economic health in Canada’s manufacturing industry. Because manufacturers are quickly affected by market conditions, changes in their sales can be an early signal of future activity such as spending, hiring, and investment. Similarly, monthly Wholesale Sales numbers came out below previous levels this morning at 0.8% versus last month’s 2%. As an indicator of consumer spending, Wholesale Sales data can show a possible slowdown in the economy. In oil news, West Texas Intermediate (WTI) crude oil was down slightly this morning by around -0.43% to the $81.92 level.Key Movers
The US Dollar Index (DXY) was down slightly this morning by around -0.05% to the 104.05 level. Markets began this week cautiously following the assassination attempt on former President Donald Trump over the weekend. Federal Reserve Chair, Jerome Powell is scheduled to speak later today at the Economic Club of Washington. In data news, the Empire State Manufacturing Index was released this morning. This index rates the relative level of general business conditions in New York state. The data came out at -6.6 which was lower than the previous release. Anything over 0.0 shows improving economic conditions meaning that this index continued to show depreciating economic conditions.In Eurozone news, the EUR could see some movement later this week following the European Central Bank’s (ECB) interest rate announcement on Thursday. Market predictions show that the rate will remain at 4.25%. The EUR/USD pair trended upwards so far today and sat around 1.0913 this morning, near a 4-month high.
In Eurozone news, the EUR could see some movement later this week following the European Central Bank’s (ECB) interest rate announcement on Thursday. Market predictions show that the rate will remain at 4.25%. The EUR/USD pair trended upwards so far today and sat around 1.0913 this morning, near a 4-month high.
Expected Ranges
- EUR/CAD: 1.4845 – 1.4894 ▲
- GBP/CAD: 1.7683 – 1.7726 ▲
- AUD/CAD: 0.9231 – 0.9259 ▲
- USD/CAD: 1.3628 – 1.3664 ▲
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