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The Canadian Dollar continues to rise after Tuesday’s gains. Business and intermediary sales in Canada showed a slight recovery. However, Loonie gains are being limited by declining Crude Oil bids.
The Canadian Dollar (CAD) is experiencing further gains on Wednesday as broader markets continue to express a risk-on sentiment. Wholesale and business sales figures in Canada exceeded expectations, helping to strengthen the Loonie. Nonetheless, declines in Crude Oil prices are restricting CAD gains.
Market Movers: Canadian Dollar continues to climb as Loonie bulls push gains against the US Dollar for a second day. Canadian Manufacturing Sales in September beat forecasts, but still fell from August’s levels. Wholesale sales softened but still exceeded expectations in September.
US data did not meet expectations as Retail Sales for October declined and the Core Producer Price Index (PPI) for the year into October fell below forecasts. Declining Crude Oil prices are limiting CAD gains.
On Thursday, Canadian Housing Starts and changes in employment insurance benefits recipients will be released.
Technical Analysis: Canadian Dollar aiming for additional upside against the Greenback. The hope for an additional day of gains for the Canadian Dollar (CAD) against the US Dollar (USD) has pushed the USD/CAD back from the 1.3700 handle. The pair tested support near 1.3650.
The table below shows the percentage change of the Canadian Dollar (CAD) against major currencies this week. The Canadian Dollar was the strongest against the US Dollar.
The heat map displays percentage changes of major currencies against each other. Factors influencing the Canadian Dollar include interest rates, the price of Oil, the health of the economy, inflation, the Trade Balance, market sentiment, and the US economy.
The Bank of Canada (BoC) plays a significant role in influencing the Canadian Dollar by setting interest rates, and the price of Oil also has a direct impact on the CAD’s value. Additionally, macroeconomic data releases and the health of the economy can impact the Canadian Dollar.
