The Canadian Dollar is experiencing low trading volume at the beginning of the week due to Canada’s Remembrance Day holiday, which has most provinces out of the office for Monday. As a result, the economic calendar is sparse this week, with little Canadian data available. The Loonie will be influenced by overall market sentiment as the week progresses, as it struggles to find momentum in thin holiday markets. The week’s schedule includes a panel discussion in Zurich, Switzerland by Bank of Canada Deputy Governor Toni Gravelle. The technical analysis indicates thin markets for the Canadian Dollar’s trading against the US Dollar, with the USD/CAD pair struggling to maintain bullish momentum. In terms of exchange rates, the Canadian Dollar performed strongest against the New Zealand Dollar. Furthermore, inflation measures the rise in the price of goods and services, with headline and core inflation being important figures targeted by central banks. While formerly Gold was a go-to asset in times of high inflation, this is no longer the case, as higher inflation is negative for Gold due to increased opportunity-cost of holding the metal. On the flipside, lower inflation tends to be positive for Gold as it brings interest rates down, making Gold a more viable investment alternative.
