Canada brings little meaningful data to the table.
CAD traders forced to wait until Friday’s Retail Sales.
The Canadian Dollar (CAD) backslid once again on Thursday, piling on further weakness and dipping to 30-week lows. A lack of meaningful Canadian economic data is giving the CAD little support, and markets are focusing on an upside surprise in US Purchasing Managers Index (PMI) figures in May.
Canada will print March Retail Sales on Friday, alongside US Durable Goods Orders. The latest update from the University of Michigan’s Consumer Sentiment Index will also be delivered on Friday. Investors are broadly expecting Canadian Retail Sales to rebound slightly, while US Durable Goods are expected to soften slightly. Meanwhile, UoM Consumer Sentiment is expected to tick upwards, while Consumer Inflation Expectations are forecast to hold steady at 3.1%.
Canadian New Housing Price Index rises 0.2% MoM in April versus the previous 0.0%. Investors expected a print of 0.1%.
US Initial Jobless Claims eased to 215K in the week ended May 17, down from the previous week’s 223K (revised from 222K) and below the forecast of 220K.
US S&P Global Manufacturing PMI recovered to 50.9 in May, climbing over the forecasted hold of 50.0.
The Services PMI component also rose to a 12-month high of 54.8.
Market hopes for a September rate cut from the Federal Reserve (Fed) are evaporating. According to the CME FedWatch Tool, rate markets are pricing in barely over 50% odds of a quarter-point cut in September, down sharply from over 70% odds at the beginning of the week.
Canadian Dollar PRICE Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the weakest against the Swiss Franc.
USD
EUR
GBP
JPY
CAD
AUD
NZD
CHF
USD
0.10%
0.14%
0.09%
0.22%
0.20%
-0.04%
-0.10%
EUR
-0.10%
0.04%
-0.02%
0.13%
0.10%
-0.15%
-0.20%
GBP
-0.14%
-0.04%
-0.04%
0.07%
0.06%
-0.18%
-0.24%
JPY
-0.09%
0.02%
0.04%
0.12%
0.09%
-0.20%
-0.20%
CAD
-0.22%
-0.13%
-0.07%
-0.12%
-0.03%
-0.27%
-0.32%
AUD
-0.20%
-0.10%
-0.06%
-0.09%
0.03%
-0.23%
-0.31%
NZD
0.04%
0.15%
0.18%
0.20%
0.27%
0.23%
-0.05%
CHF
0.10%
0.20%
0.24%
0.20%
0.32%
0.31%
0.05%
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).
The Canadian Dollar (CAD) is broadly weaker on Thursday, shedding weight across the board. The CAD is down three-tenths of one percent against the New Zealand Dollar (NZD) and a fifth of one percent against the Australian Dollar (AUD).
USD/CAD rose to the 1.3700 handle on Thursday as the mixed-performance Greenback outpaces the softening Canadian Dollar. The pair has risen into a two-week high and is on pace to close higher for a fourth straight day. Four of the last five daily candles have closed in the green.
USD/CAD is extending a bullish rebound from the 1.3600 handle as the pair rises further from the 200-day Exponential Moving Average (EMA) at 1.3551. However, the pair still remains down from the last major swing high into 1.2850 in mid-April.
Economic Indicator
S&P Global Services PMI
The S&P Global Services Purchasing Managers Index (PMI), released on a monthly basis, is a leading indicator gauging business activity in the US services sector. As the services sector dominates a large part of the economy, the Services PMI is an important indicator gauging the state of overall economic conditions. The data is derived from surveys of senior executives at private-sector companies from the services sector. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. A reading above 50 indicates that the services economy is generally expanding, a bullish sign for the US Dollar (USD). Meanwhile, a reading below 50 signals that activity among service providers is generally declining, which is seen as bearish for USD.
Last release: Thu May 23, 2024 13:45 (Prel)
Frequency: Monthly
Actual: 54.8
Consensus: 51.3
Previous: 51.3
Source: S&P Global
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