- The Canadian Dollar stabilizes amid fluctuations in investor sentiment.
- Bank of Canada rate call slated for the midweek.
- Anticipation for US Nonfarm Payrolls (NFP) to be a focal point throughout the week.
The Canadian Dollar (CAD) is maintaining familiar levels on Monday as the market anticipates another interest rate announcement from the Bank of Canada (BoC) and keeps a keen eye on the upcoming US Nonfarm Payrolls (NFP) report scheduled for Friday. On Wednesday, the BoC is anticipated to keep rates steady at 5%, while investors, eager for a potential rate cut from the Federal Reserve (Fed), will scrutinize US economic indicators for signs of softening throughout the week.
Key events in Canada this week include the BoC’s rate decision, although attention is likely to shift to Friday’s US NFP employment data, overshadowing Canada’s labor figures. Projections suggest a slight increase in Canada’s Unemployment Rate, and market expectations indicate a potential pullback in the US NFP numbers.
Daily digest market movers: Canadian Dollar mostly flat as markets hinge on rate cuts
- Quiet start to the week as markets focus on Fed rate cut odds.
- Softer US data last week leads to an uptick in June rate cut hopes.
- BoC expected to hold steady on rates on Wednesday.
- The US ISM Services Purchasing Managers Index (PMI) for February is predicted to decline slightly from 53.4 to 53.0.
- Investors will be monitoring for subdued data releases in the US, with the expectation that a weakening US economy could increase the likelihood of a Federal Reserve rate cut.
- The CME FedWatch Tool indicates a probability of over 70% for a Federal Reserve rate reduction in June at the current assessment.
- The Bank of Canada’s rate announcement on Wednesday is anticipated to reveal no changes, with expectations that BoC Governor Tiff Macklem will maintain the current stance.
- Wednesday’s release of the US ADP Employment Change for February is expected to demonstrate an increase in US employment, reaching 150,000 for the month, compared to the previous month’s 107,000.
Canadian Dollar price today
The following table illustrates the percentage change of the Canadian Dollar (CAD) against various major currencies today, with particular strength observed against the Japanese Yen.
Technical analysis: Canadian Dollar shifts to flat side as market eyes drift
The Canadian Dollar (CAD) experiences minimal movement on Monday, registering a decrease of approximately four-tenths of a percent against the Pound Sterling (GBP) as the trading week commences. Against the US Dollar (USD), the CAD remains nearly unchanged, fluctuating within a tenth of a percent from Monday’s opening rates.
The USD/CAD pair is poised for its third consecutive day of trading within a relatively flat range. Bids are converging in the middle, and prices are navigating within the confines of the rangebound figures, spanning from 1.3600 to 1.3550. The immediate near-term technical ceiling is at the 1.3600 mark, with prices consistently trading on the higher side of the 200-day Simple Moving Average (SMA) at 1.3477.
USD/CAD hourly chart
USD/CAD daily chart
