The Canadian dollar ended the day slightly stronger on Friday and is flat this morning. The currency is flat against the US dollar, but is selling off against the euro. As there has been limited news in the past few days that has influenced the currency, trading in the currency has been driven by movements in the US dollar and crude oil. Both the US dollar and crude oil are down this morning, and the Canadian dollar is flat as a result. After last week's sharp fall in the currency, the medium-term trend remains bearish.
The USD/CAD exchange rate is currently above 1.2840. The euro is up against the Canadian dollar. EUR/CAD is currently above 1.5140. Lastly, the pound is down against the Canadian dollar, with GBP/CAD trading above 1.7160.
This is a very light week for the Canadian dollar. Data including new housing price index figures on Thursday and manufacturing shipments on Friday are unlikely to move the currency. Instead, CAD is more likely to take cues from movements in Canadian dollar bond markets and crude oil prices. Last week, the loonie sold off after the Bank of Canada disappointed markets.
As the Canadian dollar strengthens on better GDP data, we are upgrading the currency to neutral in the short-term. Looking at various technical indicators on a daily chart of the Canadian dollar, the currency is now trading within normal conditions.
As the Canadian dollar falls on lower rate hike expectations and weaker crude oil, we are downgrading the currency to bearish in the medium-term. Looking at a weekly chart, the currency is trading within normal conditions. This is based on various technical indicators on the Canadian dollar currency index.