The Canadian dollar ended the day flat against the US dollar yesterday and remains flat this morning. Despite the ongoing US dollar sell-off, CAD has been trading sideways. Looking at USD/CAD, the exchange rate has been trading in a tight range around 1.2850 for the last few days. Given the lack of market-moving news and events in the last 24 hours, movements in the currency continue to be dictated by momentum. As the short and medium-term trend remains bearish, the Canadian dollar remains weak.
The USD/CAD exchange rate is currently above 1.2850. The euro is up against the Canadian dollar. EUR/CAD is currently above 1.5180. Lastly, the pound is flat against the Canadian dollar, with GBP/CAD trading above 1.720.
This week’s economic data and events relating to the Canadian dollar include inflation and GDP growth. On Thursday, we’ll get retail sales, November headline CPI and core CPI. On Friday, we’ll see October GDP growth. Last week, the Canadian dollar rallied after Poloz suggested that the economy had made “tremendous” progress.
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.