CAD remains under pressure
Daily Currency Update
The USD/CAD pair consolidated in a tight range above the 1.36 level so far today. The pair dipped to the 1.358 level following the release of US Consumer Price Index (CPI) data this morning before regaining ground to the 1.3622 range. The Canadian dollar continued to be put under pressure amid growing speculation that the Bank of Canada (BoC) will deliver subsequent rate cuts. Deteriorating Canadian labour market conditions have boosted expectations of more rate cuts by the BoC.Key Movers
The US Dollar Index (DXY) dipped by around -0.70% today to the 104.31 level. The CPI data, which is a broad measure of costs for goods and services, dipped 0.1% from May to June. This was the lowest level in more than three years and helped bolster the case for upcoming rate cuts by the Federal Reserve. The CME FedWatch tool showed that the probability of the Fed cutting rates in September jumped to 69.5%.The EUR/USD pair rallied to nearly 1.0900 today. The major currency pair strengthened after the US CPI June report came out with softer-than-expected data. This boosted market speculation for upcoming Fed rate cuts in the September meeting.
The GBP/USD pair gained traction in the American session on Wednesday and registered its highest daily close since March. The pair traded in positive territory above 1.290 so far today. Bank of England (BoE) Chief Economist Huw Pill noted that the BoE still has some work to do before the domestic persistent component of inflation is gone, further supporting the GBP.
Expected Ranges
- EUR/CAD: 1.4743 - 1.4826 ▲
- GBP/CAD: 1.7489 - 1.7614 ▲
- AUD/CAD: 0.9179 - 0.9247 ▲
- USD/CAD: 1.3584 - 1.3639 ▼