CAD Near Multi-Year Lows, Market Awaits BoC Rate Cut & US CPI; Oil Gains Amid Supply Shifts

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.4080-1.4290

Euro                 1.4790-1.5020

Sterling            1.7960-1.8190

WTI Oil (opening level) $69.58

The CAD is opening at 1.4185 ( 0.7049)

Headlines 

·    CAD trades weak near multi-year lows after brushing 1.4200 yesterday ahead of an anticipated 50 basis point rate cut from the Bank of Canada today - at 9:45 am- as the central bank will have outpaced the Fed with 175 basis points of easing, while the Fed has only eased 50 basis points.

·    USDJPY found resistance near 152.00 as US treasury yields rebounded sharply yesterday. The US dollar traded mostly sideways later yesterday as the market looks ahead to US November CPI data today with considerable anticipation.

·    AUD and NZD traded to new lows versus the US dollar, with multi-year lows coming into view in AUDUSD and NZDUSD coming into view to the downside. Australia reports November employment data tonight,

·    Crude oil trades higher ahead of key US inflation data and OPEC’s monthly report, supported by the Biden administration considering new sanctions on Russia's oil trade; a key policy meeting in China; and the EIA now forecasting a small supply deficit in 2025 compared with a previous surplus—a stark contrast to the IEA’s recent forecast for a 1 million barrel-a-day surplus. Note, the IEA’s latest Monthly Report is due on Thursday.