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The Canadian Dollar is currently being impacted by declining Crude Oil bids. Housing Starts in Canada are increasing, but US unemployment figures are overshadowing this. WTI Crude Oil is now below $74 per barrel. The Canadian Dollar (CAD) is being pushed down against the US Dollar (USD) due to decreasing Crude Oil and softer risk appetites. Canada saw a rise in annualized Housing Starts in October, but this was overshadowed by a miss for US Initial Jobless Claims, which has had an impact on market sentiment.
In market news, the Canadian Dollar is on the back foot with no support from Crude Oil, while US Initial Jobless Claims have risen to their highest level in nearly two years.
Macroeconomic data releases in Canada show a rise in Housing Starts to 274.7K new homes starting construction, which is over the expected 252.9K and higher than September’s reading of 270.7K. However, OPEC member countries continue to export more oil than expected, leading to a decrease in Crude Oil prices and a negative impact on the Canadian Dollar in the markets.
Technical analysis from Scotiabank suggests limited scope for near-term gains for the Canadian Dollar. The USD/CAD has seen a rejection from a rising trendline and reclaimed the 1.3700 handle during Thursday trading. Long-term technical support comes from the 200-day SMA sitting near the 1.3500 handle.
Additionally, the percentage change of the Canadian Dollar (CAD) against listed major currencies today is shown in a table.
The Canadian Dollar’s value is influenced by factors such as interest rates set by the Bank of Canada, the price of Oil, the health of the economy, inflation, trade balance, and market sentiment. The Bank of Canada also has a significant influence on the Canadian Dollar by setting interest rates and using quantitative easing and tightening. The price of Oil is a key factor impacting the value of the Canadian Dollar, and macroeconomic data releases gauge the health of the economy and also have an impact on the direction of the CAD.
