- The Canadian dollar strengthened on improving market sentiment.
- Canada posted GDP growth of 0.3%, supporting CAD.
- US PCE inflation also declined, further boosting hopes for interest rate cuts.
The Canadian dollar (CAD) found some room on the high side on Friday, pushing up a scant tenth of a percent against the U.S. dollar amid choppy intraday price action after key economic data broadly met market expectations. Canadian Gross Domestic Product (GDP) rose slightly and U.S. Consumer Expenditures (PCE) inflation rates cooled slightly.
Canada saw a slight raise in GDP growth in April, rebounding from the previous month’s figures. The US data set also broadly met market expectations, although US personal spending fell low of expectations despite post-revision improvement.
Daily market review: Canadian GDP rebounds, US inflation continues to decline for now
- Canadian GDP rose 0.3% on a monthly basis in April, meeting market expectations and narrowing after growing 0.0% in the previous month.
- Inflation according to the US PCE price index fell to 2.6% y/y in May, which met market forecasts and decreased compared to the previous level of 2.8%.
- Market bets on a September Federal Reserve (Fed) rate cut rose after the PCE. Interest rate markets are pricing in a 66% chance of at least a quarter-point rate cut by the Fed on September 18, compared with inflation of 60% before the PCE, according to CME’s FedWatch Tool.
- University of Michigan (UoM) five-year consumer inflation expectations also fell to 3.0% in June, down from the previous level of 3.1%.
- The UoM consumer sentiment indicator for June rose sharply from 65.6 to 68.2, exceeding the median market forecast of 65.8.
CANADIAN DOLLAR PRICE TODAY
The table below shows the percentage change in the Canadian Dollar (CAD) against the major currencies traded today. The Canadian dollar was strongest against the Japanese yen.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.06% | 0.00% | 0.05% | -0.10% | -0.32% | -0.13% | -0.03% | |
| EUR | 0.06% | 0.07% | 0.09% | -0.03% | -0.25% | -0.08% | 0.04% | |
| GBP | -0.01% | -0.07% | 0.02% | -0.12% | -0.34% | -0.15% | -0.06% | |
| JPY | -0.05% | -0.09% | -0.02% | -0.16% | -0.37% | -0.19% | -0.07% | |
| BOOR | 0.10% | 0.03% | 0.12% | 0.16% | -0.23% | -0.04% | 0.05% | |
| AUD | 0.32% | 0.25% | 0.34% | 0.37% | 0.23% | 0.19% | 0.29% | |
| NZD | 0.13% | 0.08% | 0.15% | 0.19% | 0.04% | -0.19% | 0.09% | |
| CHF | 0.03% | -0.04% | 0.06% | 0.07% | -0.05% | -0.29% | -0.09% |
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: The Canadian Dollar regains ground on Friday, sending USD/CAD to familiar levels
The Canadian dollar found a bargain on Friday, gaining against most of its major currencies as markets prepare to end a relatively serene trading week. The CAD gained about one-tenth of one percent against the U.S. dollar on Friday and rose nearly one-quarter of one percent against the sharply weakened Japanese yen.
USD/CAD briefly hit a recent weekly high near 1.3735 early Friday morning before returning to known short-term lows near 1.3675. CAD strength briefly halted the currency pair’s recent rally following the US dollar offer, sending USD/CAD into a short-term tailspin around the 200-hour exponential moving average (EMA) near the 1.3700 level.
USD/CAD hourly chart
USD/CAD daily chart
Economic indicator
Gross Domestic Product (m/m)
Gross Domestic Product (GDP) published by Statistics Canada on a monthly and quarterly basis, it is a measure of the total value of all goods and services produced in Canada during a given period. GDP is considered the main measure of Canadian economic activity. The Ministry of Finance’s reading compares economic activity in the reference month with the previous month. Generally, a high reading is seen as bullish for the Canadian Dollar (CAD), while a low reading is seen as bearish.
