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Canadian Dollar sees give-and-take following mixed prints on US Retail Sales, Canadian CPI figures – Crypto News
- Canadian Dollar slumped 0.65% from the day’s open after US Retail Sales beat the market.
- Canada CPI inflation missed expectations, but Loonie traders are shrugging off the miss as the US Dollar recedes across the board.
- Crude Oil spot prices are dipping for Tuesday, hobbling excess gains for the CAD.
The Canadian Dollar (CAD) went V-shaped after markets saw a large run-up in the US Dollar (USD) ahead of Tuesday’s US Retail Sales reading, and a beat on the expected figure is seeing broad-market sentiment improving, sending the USD lower across the board, with the CAD shrugging off a miss for Canadian Consumer Price Index (CPI) figures.
Canada CPI inflation came in below expectations, but the Loonie is getting bolstered back into the day’s opening prices as investors pull out of the Greenback in a risk appetite bid. Crude Oil prices are also on the low side for Tuesday, pulling support out from beneath the CAD and constraining additional gains for the day.
Daily Digest Market Movers: Canadian Dollar plunges then recovers as markets corkscrew
- The USD/CAD spiked past 1.3700 in the runup to the US Retail Sales/Canada CPI data double-header.
- A solid beat for US Retail Sales on Tuesday, with the headline figure for September coming in at 0.7%, well above the forecast 0.3% and the previous figure getting revised from 0.6% to 0.8%.
- Canadian CPI inflation missed the mark, printing at 3.8% for the annualized period into September, under the 4% forecast-steady reading.
- A solid beat for US Retail Sales sent risk-hungry investors piling out of the USD and into riskier assets, sending the Greenback down across the board.
- USD/CAD recovered the day’s bids back towards the 1.3600 handle.
- A miss for Canadian CPI inflation is capping off Loonie gains against the Greenback.
- Crude Oil prices are also seeing downside pressure for Tuesday, limiting CAD upside momentum.
- CAD traders will be looking ahead to Friday’s Canadian Retail Sales to make up ground.
- Crude Oil getting knocked around on Tuesday, WTI pinned to $85
Technical Analysis: Canadian Dollar rebounds from pre-US Retail Sales runup, USD/CAD looking to reclaim 1.3660
The USD/CAD spiked to a seven-month high in the early Tuesday session, before dropping back into Monday’s trading range after markets turned broadly risk-on, taking the pair back towards 1.3620, and intraday action is now tussling with the 50-hour Simple Moving Average (SMA) near 1.3635. As Tuesday trading develops, the Canadian Dollar is seeing a refreshed push back into familiar levels near 1.3660.
Tuesday’s spike-and-tumble for the USD/CAD leaves the pair constrained in near-term levels on the daily candlesticks, with technical support coming from the 50-day SMA near 1.3575, while last week’s swing high into the 1.3700 handle represents the figure to beat for USD/CAD bidders.
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 Australian Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.19% | 0.24% | 0.21% | -0.39% | 0.13% | 0.08% | 0.00% | |
| EUR | 0.19% | 0.45% | 0.39% | -0.20% | 0.32% | 0.29% | 0.20% | |
| GBP | -0.26% | -0.45% | -0.05% | -0.65% | -0.12% | -0.16% | -0.26% | |
| CAD | -0.21% | -0.39% | 0.05% | -0.59% | -0.07% | -0.11% | -0.21% | |
| AUD | 0.39% | 0.19% | 0.64% | 0.59% | 0.52% | 0.48% | 0.38% | |
| JPY | -0.14% | -0.33% | 0.15% | 0.07% | -0.53% | -0.04% | -0.14% | |
| NZD | -0.09% | -0.27% | 0.17% | 0.11% | -0.47% | 0.04% | -0.10% | |
| CHF | -0.01% | -0.20% | 0.24% | 0.20% | -0.40% | 0.12% | 0.12% |
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).
Risk sentiment FAQs
In the world of financial jargon the two widely used terms “risk-on” and “risk off” refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.
Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.
The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.
The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.
