Photo by Michelle Spollen on Unsplash

The Canadian Dollar (CAD) is mostly steady on Tuesday as broad-market sentiment dictates the flow of CAD pairs as Loonie traders buckle down ahead of the Bank of Canada’s (BoC) latest rate call and subsequent press conference. Crude Oil markets are tipped into the high end heading into the mid-week, keeping the Canadian Dollar propped up and preventing pre-BoC pullbacks in the near term.

Canada saw new home prices flatten in December and decline on an annualized basis, but Canada’s housing bubble remains one of the worst in the G20 of developed economies with housing affordability at its worst in over four decades. Runaway home prices are expected to crimp economic growth and tilt the Canadian domestic economy into a recession in the first half of 2024.

Daily Digest Market Movers: Canadian Dollar traders pull to the middle ahead of BoC

• BoC rate call and monetary policy statement due on Wednesday, Canadian Dollar traders benched ahead of central bank statement release.
• CAD gains in Loonie pairs result from headline-driven weaknesses in peer currencies.
• Canada’s New House Price Index flatlined at 0.0% in December compared to the previous month’s -0.2%.
• New home prices in Canada eased 0.9% for the year ended December, in-line with the previous figure.
• Despite a near-term loosening of Canadian housing price growth, Canada sees one of the worst housing affordability ratios in the G20.
• Bank of Montreal (BMO) Chief Economist Doug Porter noted that Canada has entered a recession shortly after the last three runaway spikes in housing unaffordability.
• Crude Oil markets are on the high end on Tuesday, bolstering the Canadian Dollar with West Texas Intermediate (WTI) US Crude Oil holding between $75.00 and $73.00 per barrel.

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 Euro.

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: CAD sees gains as counterpart currencies shed weight

The Canadian Dollar (CAD) is getting propped up against the broader currency market on Tuesday as the Loonie’s major currency peers waffle heading into the middle of the week. The Canadian Dollar is on the high side against the Euro (EUR) by four-tenths of a percent, while gaining over a quarter of a percent against the Pound Sterling (GBP) and the Swiss Franc (CHF) as the European bloc currencies wither on market sentiment.

The US Dollar (USD) is holding mostly flat against the Canadian Dollar on Tuesday with the USD/CAD rotating sideways on the day. The pair hit an intraday low of 1.3453 before rebounding back within range of Tuesday’s opening bids of 1.3478.

The Dollar-Loonie pair caught a bounce from the 200-hour Simple Moving Average (SMA) on Monday near 1.3415, and the pair is holding on the high side ahead of headline drivers in the mid-week market session on Wednesday. 

The USD/CAD continues to get mired in technical congestion between the 50-day and 200-day SMAs, with price action consolidating near the 1.3450 to 1.3500 region. The pair is currently trading up 2.3% from December’s swing low into 1.3177.

USD/CAD Hourly Chart

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USD/CAD Daily Chart

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