- Canadian dollar weaker overall, depreciating across the board.
- Canada doesn’t report much significant data.
- CAD traders were forced to wait until Friday’s retail sale.
The Canadian dollar (CAD) fell again on Thursday, deepening on further weakness and hitting 30-week lows. The lack of significant economic data from Canada is providing little support for the CAD, with markets focusing on the positive surprise of May data from the U.S. Purchasing Managers’ Index (PMI).
Canada will print March retail sales data on Friday along with U.S. sturdy goods orders. The latest update to the University of Michigan Consumer Sentiment Index will also be released on Friday. Investors generally expect Canadian retail sales to rebound slightly, while U.S. retail sales will weaken slightly. Meanwhile, UoM consumer sentiment is expected to improve, with consumer inflation expectations remaining at 3.1%.
Daily market update: Canadian Housing sees little impact on US PMI data
- The Canadian New Home Price Index increased by 0.2% m/m in April compared to the previous level of 0.0%. Investors expected a print rate of 0.1%.
- U.S. jobless claims for the week ended May 17 fell to 215,000, down from 223,000. in the previous week (corrected from 222 thousand) and below the forecast of 220 thousand.
- The US S&P Global Manufacturing PMI rose to 50.9 in May, exceeding the forecast to remain at 50.0.
- The services PMI component also rose to a 12-month high of 54.8.
- Market hopes for a September interest rate cut by the Federal Reserve (Fed) are evaporating. According to the CME FedWatch Tool, interest rate markets are pricing in just over a 50% chance of a quarter-point cut in September, down sharply from over a 70% chance at the start of the week.
Canadian DOLLAR PRICE today
The table below shows the current percentage change of the Canadian Dollar (CAD) against the major listed currencies. The Canadian dollar was the weakest against the New Zealand dollar.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.04% | 0.04% | 0.16% | 0.10% | -0.00% | -0.15% | -0.08% | |
| EUR | -0.04% | 0.00% | 0.14% | 0.06% | -0.04% | -0.19% | -0.13% | |
| GBP | -0.04% | -0.00% | 0.14% | 0.05% | -0.04% | -0.20% | -0.13% | |
| JPY | -0.16% | -0.14% | -0.14% | -0.07% | -0.18% | -0.38% | -0.26% | |
| BOOR | -0.10% | -0.06% | -0.05% | 0.07% | -0.10% | -0.25% | -0.19% | |
| AUD | 0.00% | 0.04% | 0.04% | 0.18% | 0.10% | -0.15% | -0.10% | |
| NZD | 0.15% | 0.19% | 0.20% | 0.38% | 0.25% | 0.15% | 0.07% | |
| CHF | 0.08% | 0.13% | 0.13% | 0.26% | 0.19% | 0.10% | -0.07% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select 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 (basis)/USD (quote).
Technical Analysis: Softer CAD further facilitates USD/CAD to 1.3700
The Canadian dollar (CAD) is broadly weaker on Thursday, causing the currency to weaken overall. The CAD fell three-tenths of one percent against the New Zealand dollar (NZD) and one-fifth of one percent against the Australian dollar (AUD).
USD/CAD rose to the 1.3700 level on Thursday as the mixed-performing Canadian dollar overtook the weakening Canadian dollar. The pair hit a two-week high and is on track to close higher for the fourth day in a row. Four of the last five daily candles closed in green.
USD/CAD continues its bullish rebound from the 1.3600 level as the pair continues to rise from the 200-day exponential moving average (EMA) at 1.3551. However, the pair is still down from the last major swing to 1.2850 in mid-April.
