- Canadian Dollar churns as market focus gets pulled elsewhere.
- Canada remains absent from economic calendar until Wednesday.
- Mid-week release of the BoC’s Summary of Deliberations on the cards.
The Canadian Dollar (CAD) is broadly mixed on Tuesday as CAD traders find their focus pulled elsewhere. A data-light week has sent the Canadian Dollar adrift, giving a mixed performance against the major currencies board.
Canada has a low-impact week on the cards with strictly mid-tier data releases scheduled. However, CAD traders will still want to keep an eye out for the Bank of Canada’s (BoC) latest Summary of Deliberations slated to be released on Wednesday, as well as Canadian Retail Sales scheduled for Friday.
Daily digest market movers: CAD set adrift as Fedspeak, US data dominate
- A plurality of policymakers from the US Federal Reserve (Fed) are making appearances on Tuesday, working steadily to try and force down rate cut expectations amid stubbornly high inflation.
- Fed policymakers remain cautious on inflation, gradual progress expected
- US Retail Sales failed to recover as strongly as forecasts anticipated in May, coming in at 0.1% versus the expected 0.2%. The previous month’s figure was also revised lower to -0.2% from the initial 0.0%.
- US Retail Sales ex Autos declined 0.1% in May, flubbing the 0.2% forecast, while the previous print was also revised down to -0.1% from 0.2%.
- BoC’s Summary of Deliberations on Wednesday are unlikely to reveal much news from the Canadian central bank, but there won’t be much else for CAD traders to watch with US markets slated to be shuttered for the Juneteenth holiday.
Technical analysis: Canadian Dollar gives mixed performance on Tuesday
The Canadian Dollar (CAD) is broadly mixed on Tuesday, gaining ground against the US Dollar (USD) and Japanese Yen (JPY) but falling back against the Swiss Franc (CHF) and Australian Dollar (AUD). The CAD climbed around a quarter of one percent against the Yen and a scant tenth of one percent against the Greenback but fell nearly seven-tenths of one percent against the Swiss Franc and declined half of a percent against the Aussie.
USD/CAD slipped back into all-too-familiar consolidation levels on Tuesday, treading water in a rough consolidation range between 1.3760 and 1.3720. Near-term momentum remains hung up on median bids at the 200-hour Exponential Moving Average (EMA) at 1.3730.
Despite holding in bullish territory above the 50-day EMA at 1.3674, daily candlesticks remain sluggish, trading on the low side of last week’s peak bids near 1.3790. Bullish momentum has drained out of USD/CAD, and bidders may be primed for a fallback to rising technical support below the 1.3700 handle.
