Loonie is mixed amid rising oil prices
Daily Currency Update
The Canadian dollar was down against the USD in premarket trading this morning but has moved back to strength as the USD declined following this morning’s inflation release. In Canadian data, markets saw Gross Domestic Product (GDP) growth in April which showed 2.6% growth over the year before. Oil was up so far today, on track for a third straight weekly gain. The West Texas Intermediate (WTI) crude oil price was back over $82 a barrel as demand continued to show strength.Key Movers
The US Dollar Index (DXY) was turning down after spiking up previously this morning following the release of the Personal Consumption Expenditure (PCE) inflation data this morning. The Federal Reserve’s preferred inflation measure showed prices were up 2.6% over May of last year. This matched the consensus expectation and was down from the 2.8% markets saw last month. The USD dipped against most majors as markets viewed this data as a possibility of rate cuts from the Federal Reserve.The Euro continued to rise slightly this morning as Eurozone data seemed mixed. Employment numbers in Germany showed an additional 19,000 jobs being added last month in Europe’s biggest economy. This was better than the expected 15,000 new positions. However, unemployment moved from 5.9% to 6.0% as more people were exploring the job market. Inflation numbers in both France (2.1%) and Italy (0.8%) showed signals that the European Central Bank (ECB) may be ready for a rate cut at its next meeting.
Expected Ranges
- EUR/CAD: 1.4643 - 1.4722 ▼
- GBP/CAD: 1.7291 - 1.7372 ▼
- AUD/CAD: 0.9061 - 0.9145 ▲
- USD/CAD: 1.3681 - 0.3763 ▼