The Canadian dollar is bouncing back this morning, after entering oversold conditions earlier this week. Looking at USD/CAD, the exchange rate made its latest high slightly above 1.25, and has since fallen below this level. Earlier, the loonie was selling off thanks to weak economic data and falling crude oil prices. Last Friday, economic growth figures missed expectations, with month-over-month growth for July coming in at 0%, vs. expectations of 0.1%.
The Canadian dollar has traded in a tight range against the euro for most of this week. EUR/CAD is currently trading near 1.4660. The currency is also mostly flat against the pound this morning, with GBP/CAD below 1.6540.
This week's economic data includes manufacturing PMI data (released Monday), merchandise trade balances on Thursday and unemployment data on Friday. Manufacturing PMIs released on Monday were stronger than the previous release (55 vs. 54.6 prior). Unemployment data will be watched closely as the market debates the odds of future interest rate hikes by the Bank of Canada.