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• The Canadian Dollar fell further on Wednesday, shedding another half of a percent.
• Canada remains hamstrung on the economic calendar until Friday’s labor print.
• Analysts expect another 50 bps rate cut from the BoC.

The Canadian Dollar (CAD) backslid again on Wednesday, shedding another percent against the Greenback. The US Dollar continues to gain ground across the board, with a notable lack of broad-market CAD bullishness sending the Loonie into multi-week lows.

Canada remains largely absent from the economic calendar for most of this week, leaving what few CAD traders remain at the table to sit and wait for Friday’s Canadian labor update. Global financial markets continue to hinge their outlook entirely on central bank action, and the Bank of Canada (BoC) is widely expected to undermine the Canadian Dollar once more with another outsized rate cut believed to be in the pipe.

Daily digest market movers
 

• The CAD has declined for all but two of the last ten consecutive trading days, falling two and a quarter percent against the Greenback.
• USD/CAD has risen to its highest bids since mid-August after rallying from a 33-week low near 1.3400.
• Canadian labor figures slated for Friday are expected to show a still-sluggish pace of job creation in September, forecast to come in at only 27K compared to the previous month’s 22.1K.
• The Canadian Unemployment Rate is also expected to tick up in September to 6.7% from 6.6%.
• According to some Canadian banking analysts, the BoC is expected to deliver another rate cut for 50 bps on October 23rd.

Canadian Dollar price forecast
 

USD/CAD has been in a clear bullish uptrend since mid-September, piercing several major technical levels, including the 200-day Exponential Moving Average (EMA) at the 1.3600 handle. With such a one-sided bullish pattern baked into daily candlesticks, price action traders may be looking for a retracement below 1.3650 before loading up on further USD/CAD long positions to push the pair into another leg higher.

USD/CAD daily chart
 

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