The Canadian Dollar is experiencing a period of sideways momentum on Monday as markets look ahead to important data for both the US and Canada later in the week. US PCE inflation & ISM Manufacturing, Canada GDP & employment change are upcoming data points. The Canadian Dollar (CAD) traded mostly flat against the US Dollar (USD) on Monday, moving higher towards the end of the trading day to close up by one-tenth of a percent. The trading week is expected to start off quietly before high-impact figures for both the US and Canada are released later in the week.
Traders will be closely watching Gross Domestic Product (GDP) growth figures from Canada on Thursday, as well as November’s Canadian Net Change in Employment expected on Friday. On the USD side of the economic calendar, the market will be driven by US Core Personal Consumption Expenditures (PCE) price inflation on Thursday, followed by US ISM Manufacturing Purchasing Managers Index (PMI) figures on Friday.
Canadian data releases will be overshadowed by US figures this week, with the main focus on US PCE inflation numbers for October, expected to show a slight decline in inflation price growth. The Canadian Dollar was strongest against the US Dollar in Monday’s trading, according to the percentage change table shared.
The Canadian Dollar is currently caught in a tight range between 1.3660 and 1.3630 against the US Dollar. It is being capped by the 50-hour Simple Moving Average (SMA) descending into 1.3665, with intraday support near the day’s lows at approximately 1.3620. Near-term bullish momentum is expected to see a technical ceiling at the 200-hour SMA hovering around the 1.3700 handle.
Key factors driving the Canadian Dollar (CAD) include interest rates, the price of Oil, the health of the economy, inflation, and the Trade Balance. The health of the US economy, the level of interest rates set by the Bank of Canada (BoC), and the price of Oil are significant influences on the Canadian Dollar.
