The Canadian Dollar (CAD) is mostly steady on Tuesday as broad-market sentiment dictates the flow of CAD pairs as Loonie traders buckle down ahead of the Bank of Canada’s (BoC) latest rate call and subsequent press conference. Crude Oil markets are tipped into the high end heading into the mid-week, keeping the Canadian Dollar propped up and preventing pre-BoC pullbacks in the near term. Canada saw new home prices flatten in December and decline on an annualized basis, but Canada’s housing bubble remains one of the worst in the G20 of developed economies with housing affordability at its worst in over four decades. Runaway home prices are expected to crimp economic growth and tilt the Canadian domestic economy into a recession in the first half of 2024.
The Canadian Dollar (CAD) is getting propped up against the broader currency market on Tuesday as the Loonie’s major currency peers waffle heading into the middle of the week. The Canadian Dollar is on the high side against the Euro (EUR) by four-tenths of a percent, while gaining over a quarter of a percent against the Pound Sterling (GBP) and the Swiss Franc (CHF) as the European bloc currencies wither on market sentiment. The US Dollar (USD) is holding mostly flat against the Canadian Dollar on Tuesday with the USD/CAD rotating sideways on the day. The pair hit an intraday low of 1.3453 before rebounding back within range of Tuesday’s opening bids of 1.3478. The Dollar-Loonie pair caught a bounce from the 200-hour Simple Moving Average (SMA) on Monday near 1.3415, and the pair is holding on the high side ahead of headline drivers in the mid-week market session on Wednesday. The USD/CAD continues to get mired in technical congestion between the 50-day and 200-day SMAs, with price action consolidating near the 1.3450 to 1.3500 region. The pair is currently trading up 2.3% from December’s swing low into 1.3177.
