Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The Canadian Dollar remained relatively unchanged on Thursday, continuing its recent sideways trend. Domestic economic indicators, including a rise in Canadian Building Permits, were overshadowed by the anticipation of a Federal Reserve interest rate cut.
The U.S. Producer Price Index (PPI) data, while mixed, did not significantly alter market expectations for a rate cut in September. This upcoming monetary policy decision from the Federal Reserve has been a primary driver of the Canadian Dollar’s recent performance.
As a result of the rate cut anticipation, the Canadian Dollar weakened against major currencies, including the U.S. Dollar. The market is now focused on the Federal Reserve’s meeting on September 18th, where a 25-basis-point rate cut is widely expected.
Technical Factors
The Canadian Dollar’s exchange rate against the U.S. Dollar (USD/CAD) is currently trading near the 200-day Exponential Moving Average (EMA) at 1.3623. The 1.3600 level remains a key support area. While there has been a recent upward movement, the pair is expected to continue trading within a range until the Federal Reserve’s rate decision.
