The Canadian Dollar is experiencing mixed results but has dropped against the US Dollar on Wednesday. Canada’s Current Account has posted a smaller rebound than expected, while the US GDP has exceeded expectations, impacting the outlook for Tuesday’s Fed pivot. The Canadian Dollar is fluctuating against other major currencies on Wednesday and is settling into the midrange against the US Dollar. The Loonie climbed nearly three-tenths of a percent against the US Dollar before retracting to the day’s opening bids. Canada’s trade balance rebounded in the third quarter but still missed expectations, with the Canadian Current Account printing a CAD $-3.22 billion decline. The US Gross Domestic Product (GDP) growth for the third quarter beat expectations, with the US Personal Consumption Expenditure (PCE) Prices for the third quarter missing expectations. Fedspeak is back on the offering on Wednesday, with the President of the Federal Reserve (Fed) Bank of Richmond striking a more hawkish tone. The Canadian Dollar has fallen back against the US Dollar, with the USD/CAD paring back recent losses and looking to price in floor from 1.3550. Several factors drive the Canadian Dollar, including interest rates, the price of Oil, the health of the economy, inflation, and the Trade Balance. Other factors include market sentiment and the health of the US economy. The Bank of Canada plays a significant role in influencing the Canadian Dollar by setting the level of interest rates. Macroeconomic data releases also gauge the health of the economy and can have an impact on the Canadian Dollar.
