- Broad-market risk appetite recovers on Friday as US PCE inflation eases.
- Canada saw a weaker-than-expected rebound in GDP.
- US PCE inflation cooled further, fueling rate cut hopes.
The Canadian Dollar (CAD) is broadly higher on Friday, but gains are capped after softer-than-expected prints in Canadian economic data. Investor hopes for a September rate cut are riding higher after US Personal Consumption Expenditures (PCE) Price Index inflation eased faster than expected, and rate markets are once again pricing in better-than-even odds of a rate trim from the Federal Reserve (Fed).
Canada saw a slimmer rebound in quarterly Gross Domestic Product (GDP) growth than markets had anticipated, limiting overall gains for the CAD. With US inflation headlines driving broader markets, risk sentiment is on the high side to wrap up the week and investors will be pivoting to next week’s Bank of Canada (BoC) rate call, as well as a batch of US Purchasing Managers Index (PMI) prints and another Nonfarm Payrolls in the pipe for next Friday.
Daily digest market movers: Canadian Dollar bolstered by rising risk appetite tide
- Canadian Q1 GDP rebounded to its highest growth in a year, climbing 1.7% QoQ, despite missing market forecasts of 2.2%.
- The previous quarter’s GDP was also revised sharply lower to just 0.1% versus the initial print of 1.0%.
- US Core PCE Price Index inflation rose 0.2% MoM in April, below the forecast hold at 0.3%.
- US Personal Spending was sharply lower in April, printing at 0.2% versus the forecast 0.3% and even further back from the previous 0.7% (revised from 0.8%).
- According to the CME’s FedWatch Tool, rate markets are now pricing in 56% odds of at least a quarter-point rate cut from the Fed in September.
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 | -0.15% | -0.10% | 0.28% | -0.39% | -0.30% | -0.46% | 0.05% | |
| EUR | 0.15% | 0.07% | 0.39% | -0.27% | -0.16% | -0.34% | 0.19% | |
| GBP | 0.10% | -0.07% | 0.34% | -0.33% | -0.23% | -0.43% | -0.03% | |
| JPY | -0.28% | -0.39% | -0.34% | -0.70% | -0.60% | -0.81% | -0.43% | |
| CAD | 0.39% | 0.27% | 0.33% | 0.70% | 0.08% | -0.07% | 0.26% | |
| AUD | 0.30% | 0.16% | 0.23% | 0.60% | -0.08% | -0.17% | 0.15% | |
| NZD | 0.46% | 0.34% | 0.43% | 0.81% | 0.07% | 0.17% | 0.37% | |
| CHF | -0.05% | -0.19% | 0.03% | 0.43% | -0.26% | -0.15% | -0.37% |
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 broadly higher but remains mired in technical congestion
The Canadian Dollar (CAD) has gained ground across the board on Friday, climbing half a percent against the Japanese Yen (JPY). The CAD is also up over a third of a percent against both the Pound Sterling (GBP) and US Dollar (USD) for the day.
USD/CAD has fallen back into the 1.3630 region as the pair hangs on the low end of a near-term congestion pattern. Shortside momentum continues to struggle to find territory near 1.3600, but bidders have been unable to drag prices back above 1.3750.
