Euro snaps three-day losing streak against Canadian Dollar, BoC policy eyed

The Euro recovers against the Canadian Dollar after a three-day losing streak.
The BoC is expected to leave interest rates unchanged at 2.25%.
Analysts at MUFG expect the ECB to deliver another interest rate hike this year.

Sagar Dua FXStreet

The Euro (EUR) bounces back against the Canadian Dollar (CAD) after a three-day losing streak, trading 0.13% higher to near 1.6078 during the European trading session on Wednesday. The EUR/CAD pair remained under pressure in the last three trading days, as oil prices surged due to renewed hostilities in the Middle East.

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 British Pound.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.11%	-0.13%	-0.05%	-0.01%	-0.15%	-0.04%	-0.01%
EUR	0.11%		-0.07%	0.06%	0.09%	-0.09%	0.00%	0.10%
GBP	0.13%	0.07%		0.13%	0.15%	-0.02%	0.08%	0.16%
JPY	0.05%	-0.06%	-0.13%		0.02%	-0.12%	-0.02%	0.02%
CAD	0.01%	-0.09%	-0.15%	-0.02%		-0.14%	-0.09%	0.00%
AUD	0.15%	0.09%	0.02%	0.12%	0.14%		0.07%	0.13%
NZD	0.04%	-0.01%	-0.08%	0.02%	0.09%	-0.07%		0.08%
CHF	0.00%	-0.10%	-0.16%	-0.02%	-0.01%	-0.13%	-0.08%

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 WTI Oil price is up over 17.5% in the last two weeks to near $79.00. Currencies from economies, such as Canada, which are net energy exporters, tend to outperform in a high-oil-price environment.

Later in the day, investors will pay close attention to the Bank of Canada’s (BoC) monetary policy announcement at 13:45 GMT. The BoC is expected to leave interest rates unchanged at 2.25%, as signs of an easing of underlying price pressures give policymakers little reason to raise borrowing costs while a rebound in economic growth after a technical recession reduces the need for any stimulus, Reuters report.

In the Eurozone, the resurgence in energy prices due to renewed war between the United States (US) and Iran has increased fears of more interest rate hikes by the European Central Bank (ECB) this year. Analysts at MUFG expect the ECB to deliver another 25 basis points (bps) rate hike in the September meeting.

Lately, a few ECB officials have also warned that inflationary pressures could remain higher due to Middle East conflicts. ECB Governing Council Member and President of the Deutsche Bundesbank, Joachim Nagel, said earlier this month, “I will keep options open for July and September decisions,” citing, “Inflation will stay at a high level this year.”

Economic Indicator

BoC Interest Rate Decision

The Bank of Canada (BoC) announces its interest rate decision at the end of its eight scheduled meetings per year. If the BoC believes inflation will be above target (hawkish), it will raise interest rates in order to bring it down. This is bullish for the CAD since higher interest rates attract greater inflows of foreign capital. Likewise, if the BoC sees inflation falling below target (dovish) it will lower interest rates in order to give the Canadian economy a boost in the hope inflation will rise back up. This is bearish for CAD since it detracts from foreign capital flowing into the country.

GBP/USD revisits 1.3530; Dollar pushes harder

GBP/USD adds to the weekly correction and recedes toward the 1.3530 zone on Friday. Indeed, Cable faces increasing selling pressure on the back of extra gains in the Greenback, particularly fuelled by Chair Warsh’s speech at the Jackson Hole Symposium and the US NFP Annual Revision (-79K).

EUR/USD breaches below 1.1600, multi-day lows

EUR/USD now accelerates its decline and retreats to seven-day troughs in the sub-1.1600 region at the end of the week. The pair’s pullback comes on the back of the strong rebound in the US Dollar after Chair Warsh delivered a hawkish message in Jackson Hole, while the US NFP Annual Revision came in at -79K.

Gold challenges its 200-day SMA near $4,530

Gold’s decline gathers fresh steam, hitting weekly lows while disputing its critical 200-day SMA near $4,530 per troy ounce. The yellow metal’s increasing weakness comes in response to the generalised upbeat tone in the US Dollar and the widespread rebound in US Treasury yields, as investors continue to reprice a Fed rate hike in September.

Crypto Today: Bitcoin, Ethereum, XRP rally loses steam despite steady ETF inflows

Bitcoin is back below $80,000 at the time of writing on Friday, after a second attempt at breaking resistance between $81,000 and $82,000. Meanwhile, Ethereum and Ripple mirror Bitcoin’s cooling trend, with ETH sliding to $2,500 and XRP falling toward $1.40 support.

Week ahead – RBNZ and BoC decide on rates ahead of all-important US NFP

Dollar rebounds ahead of ISM PMI and NFP data. RBNZ is expected to raise rates; focus to fall on forward guidance. BoC is set to remain on hold; will it raise rates in 2027?

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.