CAD loses as USD gains globally
Daily Currency Update
The Canadian dollar joined other major currencies in losing ground to the USD to start Friday’s session. With no Canadian data on the docket today, the Loonie was subject to broader market movement. Oil prices seemed to be regaining ground after falling 9% since late April. The West Texas Intermediate (WTI) benchmark pricing was over $79 a barrel again this morning after a second weekly draw down in US oil stocks had markets pricing in further demand for the commodity.Key Movers
The US Dollar Index (DXY) was up 0.25% this morning as the USD gained against most major currencies, particularly the euro, to end the week. Market sentiment was in favour of the Greenback following European inflation releases overnight which put the focus back on possible moves from European Central Bank (ECB). The realization that the ECB will like cut rates before the Federal Reserve does, seemed to be supporting the US dollar this morning.The Euro and GBP were both down overnight against the US dollar. Inflation released from the Eurozone showed prices were up 2.4% year-over-year in April. This was unchanged from March and matched with the consensus expectations. The Core Consumer Price Index (CPI) likewise met expectations at 2.7%. This had markets putting further money on a rate cut from the ECB in June, causing the euro to come under pressure.
Expected Ranges
- EUR/CAD: 1.4750 - 1.4829 ▼
- GBP/CAD: 1.7224 - 1.7308 ▲
- AUD/CAD: 0.9018 - 0.9091 ▼
- USD/CAD: 1.3581 - 1.3677 ▲