Canadian Dollar Soft On Friday As Markets Look Elsewhere -

Canadian Dollar Soft On Friday As Markets Look Elsewhere

Jul 26, 2024Jeremy ParkinsonFinance0

The Canadian Dollar eased across the board on Friday.

Canada sees only mid-tier data looking forward.

CAD set to end a second week down against the Greenback.

The Canadian Dollar (CAD) found little support on Friday, easing back against most of its major currency peers as global markets focus on US inflation figures. Investors continue to hinge overall sentiment on whether or not the Federal Reserve will (Fed) deliver a September rate trim, which at the current cut is fully priced into markets.The Bank of Canada (BoC) has delivered two quarter-point rate cuts in 2024, and CAD traders will essentially be on pause until more meaningful Canadian economic data crosses the calendar. It’s a long wait until Canadian inflation data in the back half of August, with the scope showing only mid-tier data until then.

Daily digest market movers: CAD eases as investors grapple with key US inflation data

Canadian Dollar continues to swim in circles as CAD traders lose interest.

US Personal Consumption Expenditures Price Index (PCE) inflation failed to meet expectations.

Investors remain undeterred, still see 100% odds of a September rate cut from the Fed.

Core US PCE inflation for the year ended June held at 2.6% YoY, flouting the median market forecasts of a tick down to 2.5%.

The University of Michigan (UoM) Consumer Sentiment Index fell less than expected to 66.4 versus the forecast 66.0, but still down from the previous 68.2.

Investors are shrugging off another uptick in UoM 5-year Consumer Inflation Expectations for July, which ticked up to 3.0% from the previous 2.9%.

Coming up next week: Mid-tier Canadian Gross Domestic Product (GDP) on Tuesday and another go around the US Nonfarm Payrolls (NFP) wheel. Both figures are currently expected to ease lower.

CANADIAN DOLLAR PRICE TODAY
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Swiss Franc.The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).

Technical analysis: CAD struggles to find momentum on Friday
The Canadian Dollar (CAD) is overall softer heading through the final trading session of the week. Markets are relatively lopsided, with the CAD struggling to hold flat against the Greenback while declining against the Euro and the Pound Sterling. The CAD is down one-third of one percent against the Aussie but gained one-quarter of one percent against the Swiss Franc.USD/CAD is set to close a second straight week in the green as the Canadian Dollar struggles to find a foothold against the US Dollar. The pair has closed green for seven consecutive trading days, and a breather in one-way price action on Friday still leaves intraday price action stuck at the top end of a supply zone prices in above 1.3750. The pair has extended a mid-month bullish bounce from the 200-day Exponential Moving Average (EMA) at 1.2613. Near-term technical levels are a risk of pivoting from resistance into support around 1.3750, and a bearish pullback will have to contend with the 50-day EMA rising into 1.3700.

USD/CAD daily chart
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