Wed. Jun 19th, 2024

CANADIAN DOLLAR FOLLOWS BROADER MARKET FLOWS AS INVESTORS GRAPPLE WITH US PCE INFLATION

CANADIAN DOLLAR USD/CAD REMAINS VULNERABLE AFTER STRONG US RETAIL SALESCANADIAN DOLLAR USD/CAD REMAINS VULNERABLE AFTER STRONG US RETAIL SALES

The Canadian Dollar (CAD) is mixed on Friday, playing a quiet counterparty to broader market focus.

  • Canadian Dollar gets pushed around as investors focus elsewhere.
  • Canada absent from economic calendar until next week.
  • US PCE inflation remains higher than expected, weighing on rate cut hopes.

back seat to broader market flows on Friday as investor focus remains pinned on decaying hopes for a rate cut from the Federal Reserve (Fed). US Personal Consumption Expenditure (PCE) Price Index figures came in above expectations on Friday, weighing further on rate trim expectations.

Canada will not release meaningful data until next Tuesday’s Gross Domestic Product (GDP) print, but all eyes will be on the Fed’s upcoming rate call next Wednesday.

Markets will also be gearing up for another Nonfarm Payrolls (NFP) next week as investors look further out for signs of a slowdown in the US economy that could spark rate cuts.

Daily digest market movers: US PCE inflation remains stubbornly hot

  • Core US PCE Price Index inflation held steady in March, printing at the expected steady 0.3%.
  • YoY Core PCE Price Index also held steady at 2.8%, flaunting the forecast of 2.6%.
  • Annualized headline PCE Price Index for the year ended March ticked higher to 2.7% versus the expected 2.6%, accelerating from the previous 2.5%.
  • With inflation stubbornly high, hopes for a September rate cut are eroding.
  • According to the CME’s FedWatch Tool, rate markets only see 60% odds of a September Fed rate trim.
  • Read more: US Core PCE inflation holds steady at 2.8% vs. 2.6% expected

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.

 USDEURGBPCADAUDJPYNZDCHF
USD 0.35%0.21%0.12%-0.10%1.32%0.30%0.18%
EUR-0.34% -0.13%-0.21%-0.43%0.97%-0.04%-0.16%
GBP-0.21%0.12% -0.09%-0.32%1.11%0.08%-0.04%
CAD-0.13%0.21%0.09% -0.23%1.19%0.15%0.06%
AUD0.10%0.44%0.32%0.24% 1.42%0.38%0.29%
JPY-1.35%-0.98%-1.12%-1.21%-1.43% -1.02%-1.15%
NZD-0.30%0.04%-0.09%-0.15%-0.38%1.04% -0.09%
CHF-0.18%0.16%0.03%-0.05%-0.28%1.13%0.11% 

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 Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

Technical analysis: Canadian Dollar plays second fiddle to US Dollar flows

The Canadian Dollar (CAD) is mixed on Friday, playing a quiet counterparty to broader market focus. The CAD has gained 1.2% on the day against the Japanese Yen as markets short the Yen wholesale. The CAD is up around a quarter of a percent against the Euro (EUR), and down a quarter of a percent against the Australian Dollar (AUD).

USD/CAD continues to churn between 1.3700 and 1.3660, but downside swings are reaching further into bearish territory. The pair still trades on the north side of the 200-day Exponential Moving Average (EMA) at 1.3527, but USD/CAD remains down 1.2% from the last swing high near 1.3850.

Related Post