• Canadian Dollar sees thin gains with support from steady Crude Oil bids.
• Canada sees a data-light economic calendar this week.
• Markets quietly kick off the new trading week ahead of key US inflation data.

In light trading on Monday, the Canadian Dollar (CAD) found some opportunity to rise against most of its major currency counterparts, moving slightly higher. As investors prepare for a sprinkling of US economic data, markets have opened quietly. Of particular interest to those strongly speculating on rate reduction from the US Federal Reserve (Fed) is Tuesday’s US Consumer Price Index (CPI) inflation report.

This week’s economic calendar for Canada needs to be stronger, and the CAD releases on the data docket have little significance. Housing starts on Thursday are anticipated to increase slightly, while wholesale sales on Friday are predicted to decline slightly. Crude oil markets and US dollar (USD) risk appetite should lead the way this week for CAD movements overall.

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Daily digest market movers: Canadian Dollar churns in familiar technical territory

• The Canadian Dollar has an opportunity to rise back to the high side on calm Monday markets, but it is still trading in familiar chart terrain.
• On Monday, crude oil showed some strength, which supported the CAD.
• The Organisation for the Petroleum Exporting Countries (OPEC) is still “ready to tweak oil policy at any time,” according to Saudi Arabia’s Energy Minister Abdulaziz bin Salman Al Saud.
• Fed representatives are repeating a more cautious approach to policy than the markets had anticipated.
• Fed’s Bowman: Predicting when or how much the Fed will reduce rates is still premature.
• More Bowman: The Fed’s fight against inflation still carries many risks, and cutbacks are unacceptable in the “immediate future.”
• According to the New York Fed’s outlook, three-year inflation will be 2.4% in January instead of 2.6% in December.
• The CME’s FedWatch Tool indicates that markets continue to factor in around 60% of a rate cut in May.
• The financial markets are continuing to hope for six rate reductions by 2024.

Canadian Dollar price today

The Canadian Dollar’s (CAD) percentage change against the main currencies listed today is displayed in the table below. The New Zealand Dollar was weakest versus the Canadian Dollar.

Technical analysis: The Canadian Dollar sees green in quiet Monday chart action

The Canadian Dollar increased on Monday as markets prepared for another trading week. The Canadian Dollar (CAD) is up approximately 0.3 percent against the generally lower New Zealand Dollar (NZD) and Euro (EUR) on a calm Monday. The Canadian Dollar is nearly flat vs. the Australian Dollar (AUD) and up a meager twenty percent against the US dollar.

Following the drop from the 1.3540 area last week, USD/CAD is still stuck below the 1.3500 mark. As long as near-term momentum is constrained, intraday movement will continue to cycle the 200-hour Simple Moving Average (SMA).

According to daily candlesticks, the 50-day SMA is consolidating into the midrange at about 1.3420, stopping bearish momentum and forcing the pair into the middle. The USD/CAD is trading back into a congestion zone just south of the 200-day SMA near 1.3475.

USD/CAD hourly chart

Conclusion

In conclusion, the Canadian Dollar’s resilience in thin markets reflects its robust underpinnings and adaptive capacity. Market participants would do well to continue monitoring and analyzing the dynamic interplay of economic, geopolitical, and trade factors that shape the loonie’s trajectory. While the path forward is not challenging, the Canadian Dollar’s presence in the forex domain promises continued intrigue and opportunity for those who engage thoughtfully and strategically.