Canadian Dollar chalks in a fourth consecutive down day, Loonie falls back further

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• The Canadian Dollar continues to lose ground, down 1% on the week.
• Loonie traders will be looking ahead to Canada GDP figures next Tuesday.
• Crude Oil prices also down for the week, draining support from the CAD.

The Canadian Dollar (CAD) is seeing more declines for Friday and is set to mark a fourth lower day in a row as Loonie traders are having a difficult time finding reasons to bid the CAD.

It’s a quiet market on Friday, but next week brings Canada Gross Domestic Product (GDP) numbers on Tuesday. CAD investors can expect to get jostled frequently by US data all through next week. The Federal Reserve (Fed) makes another rate call on Wednesday and US Non-Farm Payrolls (NFP) are slated for next Friday. The latter coincides with Canadian wages and employment figures.

Daily Digest Market Movers: Canadian Dollar continues backslide, Loonie tumbles against US Dollar

• The CAD is down 1.5% and counting from the week’s highest bids against the USD.
• Friday is set to be day number four of consecutive losses for the Loonie as markets bid the Greenback.
• The BoC has a significant uphill climb before it as inflation risks continue to increase.
• Canadian economic growth is also faltering, limiting the BoC’s policy toolkit.
• Tuesday’s upcoming Canada GDP reading will be important for CAD traders, could see Canada’s technical recession steepen further.
• Despite risks, BoC says they’re willing to raise rates further “if needed”.
• Next week will close out with another US NFP print.

Technical Analysis: USD/CAD hits 12-month high, heading for 1.3900

The Canadian Dollar (CAD) is slumping into new lows for the year against the US Dollar (USD), sending the USD/CAD toward the 1.3900 handle on Friday. The pair is currently trading near 1.3870, and all it will take is one last push to reclaim the price level the pair hasn’t seen since October 2022.

A technical support zone from 1.3600 to 1.3650 stands nearby to bump any downside corrections, with the 50-day Simple Moving Average (SMA) rising into the 1.3600 handle to add further support.

Further beyond that, the 200-day SMA is turning bullish and catching some lift into 1.3500.

The USD/CAD is now up nearly 6% from 2023’s bottom bids of 1.3092.

USD/CAD Hourly Chart