Canadian Dollar pares some losses in lopsided Wednesday trading

USD/CAD

FXStreetAug 15, 2024 12:41 AM

The Canadian Dollar recovered some ground on Wednesday.
Canada remains absent from the economic calendar, strictly low-tier data on offer.
The CAD shed some weight against the Greenback post-US CPI.

The Canadian Dollar (CAD) pared back some recent losses across the currency board on Wednesday, but a lopsided performance for the CAD still sees some red spots after the Greenback caught a bounce on a US Consumer Price Index (CPI) inflation print that met model forecasts but not investor expectations.

Canada continues its trend of delivering only low-tier economic data releases this week, leaving the CAD at the mercy of overall market flows. A recent recovery streak for the Canadian Dollar looks set to end, with CAD traders left to wait until next week’s Bank of Canada (BoC) CPI inflation print.

Daily digest market movers: US CPI dominates headlines as price pressures cool

Canadian Dollar traded down against the Greenback, but stuck within one-tenth of one percent.
US CPI inflation figures cooled in-line with median market forecasts.
However, investors had set themselves up for further declines after this week’s tumble in US PPI inflation figures.
US CPI inflation broadly printed as markets expected, with core CPI inflation ticking down to 3.2% YoY from the previous 3.3%.
Both headline and core CPI ticked up to 0.2% MoM, also as-expected.
Annualized CPI also shifted lower to 2.9% in July, below the forecasted hold at 3.0%.

Canadian Dollar price forecast: CAD win streak poised to falter near 1.3700

The Canadian Dollar (CAD) found thin gains around the major currency board on Wednesday, but remains hobbled by the US Dollar. CAD losses against the Greenback remain constrained, trading within 0.1% during the midweek market session.

USD/CAD has pumped the brakes on a Canadian Dollar recovery, at least in the near term. The pair is trading south of the 50-day Exponential Moving Average (EMA), but Greenback sellers were unable to extend the CAD’s recovery and drive USD/CAD bids all the way down to the 200-day EMA at 1.3632.

USD/CAD daily chart

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