USDCAD loses steam ahead of retail sales data
Daily Currency Update
The Canadian dollar nudged higher against the US dollar following the latest Canadian Price Index (CPI) update. Inflation in Canada rose as expected to 7.6 per cent in July from a year earlier, according to Statistics Canada which is a 0.1% increase from a month earlier. USDCAD was down 0.28% at 1.2862 at the time of writing.The market will be keenly watching tomorrow's US retail sales data. With recession fears rising in the US, consumer sentiment will prove a critical marker in governing any potential FOMC policy shift. The US Dollar Index was trading at 106.56 at the time of writing.
Key Movers
Demand for the dollar rose slightly in early morning trading as concerns over supplies of energy to the Eurozone put pressure on the euro. The German ZEW Survey showed that the Economic Sentiment in the country plunged to -55.3 in August, while the sentiment for the whole Union declined to -54.9. EURUSD was trading around 1.01734 at the time of writing.GBPUSD rose following data from the UK which showed that wages rise 5.1% compared to the same period a year ago. The next key data set is tomorrow's latest inflation number from the UK which is expected to show the Consumer Price Index push up to 9.8% adding extra pressure to the spending power of UK households. GBPUSD was around 1.2096 at the time of writing.
Expected Ranges
- EUR/CAD: 1.3067 - 1.3143 ▼
- GBP/CAD: 1.5509 - 1.5592 ▲
- AUD/CAD: 0.9024 - 0.9083 ▼
- USD/CAD: 1.2861 - 1.2928 ▼