The Canadian Dollar (CAD) showed strength against the US Dollar but weakened against other major currencies on Monday. Investors are now awaiting Canada’s latest Consumer Price Index (CPI) figures, scheduled to be released on Tuesday. Meanwhile, all eyes are on the upcoming Jackson Hole Economic Symposium later this week.
Market participants are closely monitoring the Fed’s policy stance, with expectations of a rate cut in September fluctuating. While the odds of a 50 basis points cut have reduced, a 25 basis points cut is still priced in for September, with more cuts anticipated by year-end.
Key Market Movers: Canadian CPI Data and Fed Watch
- Investors are focused on the Jackson Hole Economic Symposium for insights into the Fed’s future actions.
- Expectations for a double rate cut in September have lessened, with a 25 basis points cut still expected.
- Canadian CPI forecasted to decrease to 2.5% in July, while core CPI is expected to show growth.
Canadian Dollar Price Forecast: USD/CAD Faces Resistance
Despite the Canadian Dollar’s gain against the US Dollar, the broader market trend suggests weakness. The USD/CAD pair is approaching the 200-day EMA, indicating a potential reversal in the near term.
Overall, the Canadian Dollar’s performance is influenced by factors such as interest rates, oil prices, economic health, and inflation. Understanding these dynamics can help investors make informed decisions in the forex market.