Canadian Dollar Price, Chart, and Analysis
- The Canadian dollar[1] is trying its halt the slide against a strong US dollar[2]
- EUR/CAD[3] remains near a four-and-a-half-year low.
- US data is now key to the next move in the US dollar.
Keep up to date with all market-moving data releases and events by using the DailyFX Calendar[4]
The Canadian dollar is having a testing time against a rampant US dollar and things may get worse for the Loonie if upcoming US inflation data reinforce market expectations of a series of US interest rate hikes next year and beyond. In a week shortened by the Thanksgiving holiday in the US on Thursday, and a half-day market session on Friday, today’s US data releases, and the latest FOMC[5] minutes, are likely to set the tone for the greenback in the coming days.
The Canadian dollar is one of a number of major currencies weakening against the US dollar as US rate hike expectations continue to ramp up. The rate-sensitive US 2-year currently trades with a yield of just under 0.60%, while the benchmark US 10-year is offered with a yield of 1.65%, just 8 basis points below the recent multi-month high of 1.73%. The daily chart shows a series of lower highs off the August 20 high at 1.2949, highlighting the recent weakness in the pair. The recent ‘V’ shaped rebound from the October 21 low may have now played out, in the short-term at least, leaving the pair looking to establish a range.
Canadian Dollar (USD/CAD) Daily Price Chart November 24, 2021
Retail trader data show 58.97% of traders are net-long with the ratio of traders long to short at 1.44 to 1. The number of traders net-long is 5.60%
