USD 
EUR 
GBP 
AUD
It's been a wild ride today, with the Canadian inflation data taking center stage. And honestly, it wasn't entirely surprising to see the Loonie strengthen against its peers, given the high impact events on the docket. The inflation rate, CPI, and core inflation rate all came out at 12:30pm, and it seems like the market was pricing in a strong showing. According to FXStreet, the Royal Bank of Canada's economist Abbey Xu noted that Canadian inflation accelerated in April, mainly due to higher energy prices and fading base effects.
But what's really interesting here is how the commodity-linked currencies are performing. The Canadian Dollar, for instance, is getting a boost from rising oil prices linked to the US-Iran conflict. And if you were watching the EUR/CAD pair, you'd have noticed it weaken on Tuesday as a result. Meanwhile, the Aussie Dollar is holding steady against the US Dollar, closing at 0.7087, which is pretty impressive considering the lack of movement in other pairs. The New Zealand Dollar, on the other hand, is stuck at 0.5824 against the US Dollar, not really going anywhere.
And let's not forget about the British Pound, which is still feeling the effects of last week's political-driven selloff. The GBP/USD pair remains under pressure, although it's slightly lower versus the US Dollar but outperforming most G10 peers, as Scotiabank strategists pointed out. The Euro is also struggling, particularly against the Pound, with the EUR/GBP pair closing at 0.8660.
As the day comes to a close, it's worth noting that the British Pound is holding its ground against the Australian Dollar, with the GBP/AUD pair closing at 1.8899. And according to TD Securities' FX strategists, we can expect the USD/CAD to remain supported near 1.37 in Q2 2026, given the soft April Canada inflation and weak employment data. So, what's next? Well, it looks like we've got a few more days of volatility ahead of us, and it'll be interesting to see how the commodity currencies continue to perform.
Commodity Currencies Rise
But what's really interesting here is how the commodity-linked currencies are performing. The Canadian Dollar, for instance, is getting a boost from rising oil prices linked to the US-Iran conflict. And if you were watching the EUR/CAD pair, you'd have noticed it weaken on Tuesday as a result. Meanwhile, the Aussie Dollar is holding steady against the US Dollar, closing at 0.7087, which is pretty impressive considering the lack of movement in other pairs. The New Zealand Dollar, on the other hand, is stuck at 0.5824 against the US Dollar, not really going anywhere.
And let's not forget about the British Pound, which is still feeling the effects of last week's political-driven selloff. The GBP/USD pair remains under pressure, although it's slightly lower versus the US Dollar but outperforming most G10 peers, as Scotiabank strategists pointed out. The Euro is also struggling, particularly against the Pound, with the EUR/GBP pair closing at 0.8660.
As the day comes to a close, it's worth noting that the British Pound is holding its ground against the Australian Dollar, with the GBP/AUD pair closing at 1.8899. And according to TD Securities' FX strategists, we can expect the USD/CAD to remain supported near 1.37 in Q2 2026, given the soft April Canada inflation and weak employment data. So, what's next? Well, it looks like we've got a few more days of volatility ahead of us, and it'll be interesting to see how the commodity currencies continue to perform.