Daily Currency Update
The Canadian Dollar (CAD) maintained its strength on Wednesday, benefiting from improved risk sentiment across the foreign exchange market. The CAD rose against the Japanese Yen and the Swiss Franc, as both currencies struggled for last place during the midweek session. Despite a lack of significant Canadian economic data, the CAD is poised to be one of the best-performing currencies this week. Market participants are now looking forward to Friday's release of the latest Canadian employment figures. WTI Crude Oil is currently priced at 75.20, having trended downwards by 2.17% over the past five days.
Key Movers
The EUR/USD pair has remained stable above the 1.0900 level amid improving market sentiment. This positive mood was partly due to Bank of Japan (BoJ) Deputy Governor Shinichi Uchida's comments, which reassured markets about the BoJ's cautious approach to interest rate hikes amid global instability. The JPY soared following a 15 basis points hike by the BoJ, with Governor Kazuo Ueda emphasizing that rates remain "very low." The GBP/USD pair recovered to trade around 1.2710, buoyed by expectations of an aggressive US rate cut starting in September. This sentiment follows weak US employment data for July, raising fears of a looming recession. The Japanese Yen also experienced a robust rally, gaining 8.5% against the US dollar in July and early August, driven by interventions and the BoJ's rate hike, reaching an eight-month high.
Expected Ranges
- EUR/CAD: 1.49945 - 1.50676 ▼
- GBP/CAD: 1.74394 - 1.75156 ▲
- AUD/CAD: 0.89745 - 0.90371 ▼
- USD/CAD: 1.37211 - 1.37907 ▼