The Canadian Dollar (CAD) gained some ground on Monday as the US Dollar weakened across the board. With little significant news to guide market sentiment, the CAD edged higher, supported by a weaker Greenback. On Tuesday, Canada is set to release an update on the Consumer Price Index (CPI) inflation, which will be a key focus for CAD traders for the week ahead.
In addition to the CPI inflation update, the week’s agenda includes an appearance from Bank of Canada (BoC) Governor Tiff Macklem on Monday. Investors will also be watching for US Durable Goods Orders and US Personal Consumption Expenditures (PCE) Price Index data on Friday. All eyes will be on these key releases as traders anticipate potential rate cuts from the Federal Reserve (Fed).
The Canadian Dollar saw modest gains on Monday, with the CAD rising against the US Dollar while slipping slightly against the Euro. The upcoming CPI inflation data for Canada is expected to show a slight decrease to 2.6% from 2.7% for the year ending in May. The BoC’s own CPI core inflation metric is forecast to remain steady at 0.2% month-over-month. Traders will also be looking ahead to Friday’s US PCE Price Index inflation data for further insights.
The Canadian Dollar was the strongest against the US Dollar on Monday, with the CAD showing gains against most major currencies. The percentage change of the CAD against listed currencies indicates a positive trend for the Canadian Dollar in the market. Technical analysis shows the CAD finding fresh highs against the Greenback, with the USD/CAD pair nearing 1.3650 and extending its recent strength.
Overall, Canadian Dollar is showing signs of strength against the US Dollar, supported by weaker-than-expected economic data from the US. With key releases on CPI inflation and GDP data expected later in the week, traders will be closely monitoring these reports for further cues on the direction of the CAD. As market sentiment remains cautious and risk appetite subdued, the Canadian Dollar is likely to continue to be influenced by broader market trends.
