The Canadian Dollar (CAD) is recovering ground alongside broader market risk appetite on Thursday after the US Federal Reserve (Fed) spiked investor tensions in the midweek market session. S&P Global has shifted their rate cut expectations for the year to a single quarter-point trim in December. Consensus on Fed rate cuts is increasingly inconsistent with the CME’s FedWatch Tool showing rate markets are now betting on only a 60% chance of a September rate cut.
Bank of Canada (BoC) Governor Tiff Macklem made his second appearance in as many days. The head of the Canadian central bank testified before the Canadian government’s House of Commons Standing Committee on Finance alongside BoC Senior Deputy Governor Carolyn Rodgers. Elsewhere on the data docket, Canadian International Merchandise Trade Balance figures in March unexpectedly fell but saw few ripples in broader markets.
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Pound Sterling.
USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
USD | -0.10% | 0.03% | -0.35% | -0.59% | -1.69% | -0.55% | -0.69% | |
EUR | 0.10% | 0.13% | -0.26% | -0.49% | -1.57% | -0.45% | -0.60% | |
GBP | -0.03% | -0.12% | -0.38% | -0.62% | -1.70% | -0.60% | -0.70% | |
CAD | 0.36% | 0.26% | 0.41% | -0.23% | -1.33% | -0.21% | -0.32% | |
AUD | 0.58% | 0.50% | 0.62% | 0.25% | -1.07% | 0.02% | -0.09% | |
JPY | 1.68% | 1.54% | 1.69% | 1.31% | 1.06% | 1.10% | 0.95% | |
NZD | 0.55% | 0.48% | 0.59% | 0.20% | -0.03% | -1.16% | -0.12% | |
CHF | 0.69% | 0.59% | 0.72% | 0.33% | 0.11% | -0.99% | 0.14% |
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).
At the time of writing, the Canadian Dollar (CAD) has gained aroudn a third of a percent against the US Dollar (USD), while climbing a quarter of a percent against the Euro (EUR). The CAD has shed a percent plus a third against the Japanese Yen (JPY) on Thursday.
USD/CAD has fallen back below the 200-hour Exponential Moving Average (EMA) at 1.3709. The pair is testing chart territory below the 1.3700 handle, and is approaching a near-term demand zone between 1.3660 and 1.3630.
Despite closing bearish for eight of the last 11 trading days, and poised for another down day on Thursday, USD/CAD is only down a scant 1.08% from the last swing high into 1.3850. The pair is still trading well above the 200-day EMA at 1.3537.