The Canadian Dollar (CAD) is stuck within a tight intraday range on Wednesday as broader markets pivot to focus on Thursday’s upcoming US Consumer Price Index (CPI) inflation print for December. Rate-cut-hungry markets will be looking for continued easing in price growth pressures from the US, but market forecast models are currently expecting a slight uptick in headline inflation figures. Crude Oil caught a short-lived bounce on Wednesday, fueled by ongoing Middle East tensions and a fresh round of attacks on cargo ships by Houthi rebels. West Texas Intermediate (WTI) US Crude Oil fell back on the day after the Energy Information Administration (EIA) showed another surprise buildup in US Crude Oil stockpiles. The Canadian Dollar is getting less support from rising but choppy Crude Oil prices than usual as currency markets hunker down ahead ofUS CPI inflation. The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the weakest against the Euro.
The Canadian Dollar (CAD) is mixed against the major currencies cadre on Wednesday, shedding a little less than a fifth of a percent against the Euro (EUR) but gaining about three-tenths of one percent against the New Zealand Dollar (NZD). The CAD has also climbed around a full percent against the battered Japanese Yen (JPY) thanks to a broad-market sell-off in the Yen. The USD/CAD pair is swamped just below 1.3400, with intraday pressure skewing to the downside as the Loonie-Greenback pairing middles. Near-term price action remains buoyed by the 200-hour Simple Moving Average (SMA) near 1.3325, and bidders will be looking for continued support from a pattern of intraday higher lows driving the pair into the top end in early 2024 trading. Daily candlesticks have the USD/CAD bid facing a slowdown of bullish momentum from the 1.3400 handle, and a technical ceiling is forming up near 1.3500 as the 50-day SMA heads for a bearish cross of the 200-day SMA. With topside action capped, a pullback could see the pair heading back into December’s lows near the 1.3200 handle.
