The Canadian dollar is slowly climbing its way back up from its recent multi-month lows against the US Dollar. The Canadian dollar had fallen to 1.3614, its lowest level (CAD/USD highs) against the US Dollar since early December of 2023. In early Tuesday morning trading, the CAD was up by a quarter of a penny and overall had gained back half a penny since it hit its lowest level above-mentioned 3-month lows.
The USD/CAD pairing continues to be fixated on interest rate outlooks and the exact timing and number of interest rate cuts. Any news that brings the next move by the Fed or the Bank of Canada into greater focus is having outsized effects on the direction of the USD/CAD currency pairing.
Given that this is a short trading week with markets closed on Friday, the GDP numbers due out on both sides of the border on Thursday and Friday’s US PCE Price Index, which the Fed monitors closely as a measure of inflation, have the potential to move the Canadian dollar price compared to the US Dollar.
The USD/CAD continues to hit a brick wall at the 1.36 range, and with oil prices firming up, it’s tough to see a scenario where this week’s data pushes the USD/CAD significantly past the 1.36 range. However, if multiple economic data releases due out this week surprise in any direction, then we could see a significant jump in the value of the Canadian dollar.
The Canadian dollar is currently trading at 1.3574 CAD against the US Dollar.
