- Canadian dollar markets are closed for a federal vacation.
- US markets are also quiet, and the extension of the size of the additional minds from the green side.
- Inflation numbers in the Canadian Consumer Prices Index due this week, as well as FOMC meetings.
The Canadian dollar (CAD) was flat on Monday, driven to the center due to a complete lack of market size. Canadian and American financial markets are dark in conforming federal holidays, and trading volumes dried up at the beginning of the new trading week.
The Canadian Consumer Prices Index (CPI) will be the main printing of Loonie dealers this week. This week will also decrease from the latest price calls in the Federal Reserve (FOMC) from the FOOC Committee (FOMC) from the FOOC Committee (FOMC).
Digst Market Mark: Double -headed market holidays dries US dollar flows/CAD
- The Canadian dollar remains unchanged on Monday.
- Most of the money markets in Canada are dark for simultaneous local holidays, and the American markets are closed to celebrate the President’s Day.
- The Canadian Consumer Prices Index is decided on Tuesday. The annual CPI print in Canada is expected to be 1.8 % on an annual basis, although a slight rise in my mother’s personality is expected in January.
- The last federal reserve meetings will be published on Wednesday.
- It is scheduled to be scheduled later this week later this week, the results of the main business activity in the United States (PMI) is scheduled to be indexed by USA (PMI). .
Canadian dollar price expectations
After acquiring its fourth consecutive profit, against Greenback last week, the Canadian dollar lost all momentum on Monday. The bullish momentum in general remains limited, and the US dollar/CAD has risen below the SIA moving average for 50 days (EMA) near 1.4280. The fixed technical floor is still priced in EMA for 200 days south 1.4000.
Daily Plan USD/CAD
Questions and answers in Canadian dollars
The main factors that pay the Canadian dollar (CAD) are the level of interest rates set by Canada Bank (BOC), the price of oil, the largest export in Canada, the health of its economy, inflation and commercial balance, which is the difference between the value of Canada’s exports in exchange for its imports. Other factors include market morale-if investors are eating more risky assets (risk) or searching for safe materials (risk)-with positive CAD risks. As its largest commercial partner, the health of the American economy is also a major factor that affects the Canadian dollar.
Canada Bank (BOC) has a major impact on the Canadian dollar by determining the level of interest rates that banks can persuade each other. This affects the level of interest rates for everyone. The main goal of BOC is to keep inflation by 1-3 % by setting interest rates up or down. Relatively higher interest rates tend to be positive for CAD. Canada Bank can also use quantitative dilution and tighten it to influence credit conditions, with previous CAD negative and the other positive CAD.
The price of oil is a major factor that affects the value of the Canadian dollar. Petroleum is the largest export in Canada, so the price of oil tends to an immediate effect on the CAD value. In general, if the price of oil rises, the CAD rises, with the increased total demand for the currency. The opposite is the case if the price of oil decreases. The high oil prices also tend to increase the possibility of a positive commercial balance, which also supports CAD.
While inflation was always believed to be a negative factor of the currency because it reduces the value of money, the opposite was already the case in the modern era with the relaxation of capitalist controls across the border. Top inflation tends to lead the central banks to raise interest rates that attract more capital flows from global investors looking for a profitable place to keep their money. This increases the demand for the local currency, which in the case of Canada is the Canadian dollar.
Victory of macroeconomic data evaluates the health of the economy and can have an impact on the Canadian dollar. Indicators such as GDP, manufacturing, PMIS, employment services, and consumer morale surveys can affect CAD direction. The strong economy is useful for the Canadian dollar. Not only attracts more foreign investments, but it may encourage Canada Bank to set interest rates, which leads to a stronger currency. If economic data is weak, CAD is likely to fall.
