- US markets return after long weekend, Fedspeak to dominate.
- Canadian Dollar recedes as investors shrug off low-tier CAD data.
- Canada saw an uptick in industrial and raw materials inflation in April.
The Canadian Dollar (CAD) is broadly softer on Tuesday, paring away some of the gains found at the start of the trading week. Fedspeak is set to dominate the headlines as investors buckle down for the long wait to US Gross Domestic Product (GDP) and Personal Consumption Expenditure (PCE) inflation due on Thursday and Friday, respectively.
Canada reported an uptick in industrial inflation in April to little market reaction as investors focus on statements from Federal Reserve (Fed) officials. Broad market sentiment took a hit last week after markets were forced to re-price odds of a September rate cut, and traders are looking for firmer signs of rate cut plans from Fed central planners.
Daily digest market movers: Canadian producer-level inflation ticks higher once again
- Canadian Industrial Product Prices rose 1.5% MoM in April, reversing the forecasted decline to 0.6% from the previous 0.9%.
- Canadian Raw Material Price Index also accelerated in April, rising 5.5% against the previous month’s 4.3% (revised down from 4.7%). Median market forecasts had expected a print of 3.2%.
- Comments from Fed officials continue to dominate the market as investors continue to hope for signs of interest rate cuts despite a firmly cautious lean from policymakers.
- Canadian Current Account slated for Thursday to be overshadowed by US Q1 GDP, while market reactions to Canadian Q1 GDP on Friday will be entirely engulfed by US PCE Price Index inflation.
- Markets are expecting a downturn in US GDP, while US PCE inflation is forecast to hold in-line with previous figures, but rate cut hopes could be tainting the picture.
Canadian Dollar PRICE Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.14% | -0.05% | 0.05% | 0.01% | -0.10% | -0.09% | -0.31% | |
| EUR | 0.14% | 0.09% | 0.17% | 0.13% | 0.04% | 0.09% | -0.15% | |
| GBP | 0.05% | -0.09% | 0.10% | 0.03% | -0.04% | -0.00% | -0.25% | |
| JPY | -0.05% | -0.17% | -0.10% | -0.03% | -0.13% | -0.08% | -0.31% | |
| CAD | -0.01% | -0.13% | -0.03% | 0.03% | -0.11% | -0.06% | -0.31% | |
| AUD | 0.10% | -0.04% | 0.04% | 0.13% | 0.11% | 0.05% | -0.22% | |
| NZD | 0.09% | -0.09% | 0.00% | 0.08% | 0.06% | -0.05% | -0.25% | |
| CHF | 0.31% | 0.15% | 0.25% | 0.31% | 0.31% | 0.22% | 0.25% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
Technical analysis: Canadian Dollar hits a wall, stumbles back
The Canadian Dollar (CAD) is broadly softer on Tuesday, shedding weight across the board and holding flat against the battered Japanese Yen (JPY) as the day’s strongest pair performance from the CAD. Despite broad-spectrum weakness from the Canadian Dollar, pullbacks remain limited, with the CAD trading within a fifth of a percent against nearly all of its major peers.
USD/CAD rebounded to test 1.3650 after arresting a decline below 1.3620, and the 1.3600 handle is firming into a technical barrier rather than a target for short pressure. The pair is still down 0.8% from last week’s peak just above 1.3740, and daily candlesticks are mired in technical congestion near the 50-day Exponential Moving Average (EMA) at 1.3642.
USD/CAD hourly chart
USD/CAD daily chart
Economic Indicator
Gross Domestic Product (MoM)
The Gross Domestic Product (GDP), released by Statistics Canada on a monthly and quarterly basis, is a measure of the total value of all goods and services produced in Canada during a given period. The GDP is considered as the main measure of Canadian economic activity. The MoM reading compares economic activity in the reference month to the previous month. Generally, a high reading is seen as bullish for the Canadian Dollar (CAD), while a low reading is seen as bearish.
