CAD dips despite positive data and rising oil prices
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Daily Currency Update
The Canadian dollar dipped this morning against most major currencies despite positive Building Permits data and rising oil prices. Canadian Building Permits month-over-month data was released much higher than expected at 22.1% versus the expected 6.5%. This data measures the number and value of building permits issued, the number of residential dwellings authorized, and the number of dwelling units demolished. The steep gains were largely due to the multi-unit component which rose 23.9%. Statistique Canada stated, “Across Canada, 20,700 new dwellings in multi-unit buildings and 4,100 new single-family dwellings were authorized in July. From August 2023 to July 2024, a total of 266,200 new units were authorized.” West Texas Intermediate (WTI) crude oil was on the rise today with WTI up by around 1.8% at the 68.52 level.Key Movers
Despite higher-than-expected Producer Price Index (PPI) data, the USD Dollar Index (DXY) was still slightly down this morning near the 101.60 level. This may be due to expectations of a rate cut from the Federal Reserve if the USD remains steady. Monthly Core PPI, which measures the change in the price of finished goods and services sold by producers excluding food and energy, came in higher than expected at 0.3% versus the expected 0.2%. Monthly PPI data came in higher than expected as well at 0.2% versus the expected 0.1%. Weekly unemployment claims were also released and came in higher than expected at 230,000 versus the expected 227,000.In the Eurozone, the European Central Bank (ECB) cut rates by 0.25% as expected. There has not been any further guidance from the ECB on its likely future path for rates. Italian Quarterly Unemployment Rate data was released at lower-than-expected levels of 6.8% versus the expected 7.1%. Despite the rate cut, the EUR was up against most other major currencies so far today.
In UK news, the GBP was up against both the USD and CAD this morning with the GBP/USD pair trading near the 1.3077 level and the GBP/CAD pair at the 1.7773 mark.
Expected Ranges
- EUR/CAD: 1.4936 - 1.5011 ▲
- GBP/CAD: 1.7693 - 1.7767 ▲
- AUD/CAD: 0.9039 - 0.9087 ▲
- USD/CAD: 1.3564 - 1.3604 ▲