Canadian Dollar Trades Into Tight Range With Next BoC Rate Call In The Pipe

By Joshua Gibson of FX Street

Monday, March 4, 2024 1:10 PM EST

Canadian Dollar finds the middle as investor appetite churns.
Bank of Canada rate call slated for the midweek.
US NFP expectations to draw attention throughout the week.

The Canadian Dollar (CAD) is cycling to familiar levels on Monday with markets awaiting another rate showing from the Bank of Canada (BoC) and this week’s key US Nonfarm Payrolls (NFP) report due on Friday. The BoC is expected to hold rates at 5% on Wednesday, and investors hopeful for a rate cut from the Federal Reserve (Fed) will be looking for softening economic figures from the US this week.

The data from Canada this week will be the BoC’s rate call, with Friday’s Canadian labor figures due to get eclipsed by the US NFP employment numbers. Canada’s Unemployment Rate is expected to tick higher this week, and current market forecasts call for a pullback in the US NFP print.

Daily digest market movers: Canadian Dollar mostly flat as markets hinge on rate cuts

Quiet start to the week as markets focus on Fed rate cut odds.
Softer US data last week leads to an uptick in June rate cut hopes.
BoC is expected to hold steady on rates on Wednesday.
Tuesday’s US ISM Services Purchasing Managers Index (PMI) for February is forecast to tick down to 53.0 from 53.4.
Markets will be looking for softer US data prints as investors hope a weakening US economy will boost odds of a Fed rate cut.
CME FedWatch Tool sees over 70% odds of a Fed rate trim in June at current cut.
Wednesday’s BoC rate call is forecast to see no moves from BoC Governor Tiff Macklem.
The US ADP Employment Change for February is slated for Wednesday and is forecast to show an uptick is US employment to 150K for the month, up from the previous month’s 107K.

Canadian Dollar price today

The table below shows the percentage change of the Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Japanese Yen.

	USD	EUR	GBP	CAD	AUD	JPY	NZD	CHF
USD		-0.17%	-0.29%	0.08%	0.10%	0.24%	0.05%	0.07%
EUR	0.17%		-0.12%	0.24%	0.27%	0.41%	0.22%	0.24%
GBP	0.29%	0.12%		0.35%	0.39%	0.53%	0.33%	0.36%
CAD	-0.08%	-0.23%	-0.35%		0.04%	0.16%	-0.03%	0.00%
AUD	-0.10%	-0.27%	-0.39%	-0.03%		0.12%	-0.05%	-0.03%
JPY	-0.24%	-0.42%	-0.57%	-0.20%	-0.15%		-0.21%	-0.17%
NZD	-0.05%	-0.21%	-0.33%	0.03%	0.06%	0.19%		0.03%
CHF	-0.08%	-0.24%	-0.36%	0.00%	0.03%	0.16%	-0.03%

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 Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

Technical analysis: Canadian Dollar shifts to flat side as market eyes drift

The Canadian Dollar (CAD) is mostly flat on Monday with the Loonie shedding around four-tenths a percent against the Pound Sterling (GBP) to kick off the trading week. The CAD is close to flat against the US Dollar (USD), trading within a tenth of a percent from Monday’s opening bids.

The USD/CAD pair is set to trade into a flat range for a third consecutive trading day. Bids are pushing into the middle and prices are hung up on rangebound figures between 1.3600 and 1.3550. The 1.3600 handle is the immediate near-term technical ceiling, and prices continue to trade on the high side of the 200-day Simple Moving Average (SMA) at 1.3477.