The Canadian Dollar (CAD) started the new trading week with little movement, as both Canadian and US markets were closed for the Labor Day holiday. However, key events are on the horizon that could shake up the currency markets.
This week, the Bank of Canada (BoC) is expected to announce another interest rate cut, while US Nonfarm Payrolls (NFP) data will be released on Friday. These events could have significant implications for the CAD and USD exchange rates.
Daily Market Highlights
- Both Canada and the US are closed on Monday, limiting market activity.
- BoC expected to cut rates by another quarter point.
- US ADP Employment Change on Thursday, leading up to Friday’s NFP data release.
- Last major labor update before the Fed’s rate decision on September 18.
Canadian Dollar Forecast
After a recent rally, the CAD is now trading near the 1.3500 level against the USD. The currency’s strength has waned, and the USD/CAD pair may see a reversal in the near term, heading towards the 200-day Exponential Moving Average.
Factors Affecting the Canadian Dollar
The CAD is influenced by various factors, including interest rates set by the BoC, oil prices, economic health, inflation, and trade balance. Market sentiment and the US economy also impact the currency’s value.
Overall, this week’s BoC rate decision and US NFP data are crucial for the CAD’s performance. Investors should closely monitor these events to make informed decisions about their finances and investments.