Canadian dollar has thin trading ahead of BoC decision

The Canadian dollar is experiencing limited momentum as markets flatten out in a quiet North American trading session. The Bank of Canada’s rate decision on Wednesday is expected to have a limited impact on the Canadian dollar.

The latest New Housing Price Index figures from Canada are due in the early US session on Tuesday, but are expected to have limited impact. The Crude Oil market retests higher levels, limiting downside pressure on the Canadian Dollar. Markets are treading softly to kick off the new trading week, but sticking close to the high end after US stocks hit all-time record prices last Friday.

The Bank of Canada is expected to hold rates steady at 5%, and investors will closely watch the press conference following. Market sentiment is set to hinge on press conferences and central bank statements, with broad-market hopes of early rate cuts disappointed in recent weeks. Crude Oil markets continue to bid into recent highs, keeping the Canadian Dollar aloft.