The CAD/USD pairing was trading in a range of 1.3660 to 1.3630 for most of the day.
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.
On the monetary policy front, the conversation in Canada and the US is now focused on when, not if, interest rates will begin to be cut. The prevailing thought is that Canada will be leading the way. This raises the question: Will cutting rates help or hurt the value of the Canadian dollar? On the one hand, it signals a response to potential economic slowdowns, aiming to stimulate domestic spending and investment. On the other hand, it may reduce the allure of Canadian assets for foreign investors, potentially weakening the CAD against the USD.
The Canadian dollar is currently trading at 1.3620 CAD against the US Dollar.
