Canadian Dollar markets flatten out in quiet Monday trading

The Canadian Dollar (CAD) sees thin action on Monday to kick off the trading week with limited momentum across the major currency board. CAD traders will be looking ahead to Wednesday’s rate call from the Bank of Canada (BoC), and markets are set for a blustery Friday to end the week with a fresh print of the US Personal Consumption Expenditure (PCE) Price Index.

The latest New Housing Price Index figures from Canada are due in the early US session on Tuesday but are expected to have a limited impact. In the meantime, downside pressure on the Canadian Dollar is limited on Monday as the Crude Oil market retests higher levels. The Canadian Dollar (CAD) sees limited momentum in either direction as markets get the new trading week underway. The CAD is down around a quarter of a percent against the Pound Sterling (GBP) and the Japanese Yen (JPY) as broader markets drive up those currencies specifically, but the CAD is essentially flat against the rest of its major currency peers.

The USD/CAD is tangled up on the 200-hour Simple Moving Average (SMA) on the intraday chart as the pair continues to find reasons to stick close to the 1.34500 region. On the daily candlesticks, the USD/CAD is at risk of continuing a bearish rejection from a technical consolidation of the 50-day and 200-day SMAs just below 1.3500, and near-term risks are pointed firmly to the downside. On the high side, the USD/CAD is poised for a fresh run at last November’s peak near 1.3900 if near-term bullish momentum extends beyond last week’s swing high into 1.3550.