News and Updates

With Bank of Canada Governor Tiff Macklem suggesting that interest rates may have peaked, and Federal Reserve Bank of Atlanta President Raphael Bostic expressing more confidence in the continued decline of inflation over the next year, it appears we’ve turned a corner in the historic fight against inflation. So, how will the Canadian dollar fare against the US Dollar once the Bank of Canada (BoC) and other central banks in developed economies start to cut rates? How will the Canadian dollar perform against the USD in 2024?

The Canadian dollar is making modest headway against the US dollar this morning. The Canadian dollar has been pushed up by higher crude oil prices and broad US dollar weakness as global markets continue to be buoyed by a more optimistic outlook.

Technical trading analysis shows the Canadian dollar encountering resistance at the 1.37 level and finding support at the 1.3620 level. This suggests that the Canadian dollar will fluctuate between 1.37 and 1.362 for most of this week. The next significant catalysts are expected later in the week with the release of Canadian GDP numbers and the US PCE inflation numbers for October, both due on Thursday.

Over the course of this week, the Canadian dollar-US dollar pairing has been directionless, operating on limited volumes due partly to mixed economic signals and the US Thanksgiving holiday on Thursday.
Early in the week, Statistics Canada released the Canadian CPI numbers, which showed that inflation had cooled slightly more than anticipated.