Canadian Dollar churns sideways as markets looking ahead to midweek data

The Canadian Dollar is grappling with sideways momentum on Monday. Markets look ahead to key data for both the US and Canada in the latter half of the week.

US PCE inflation & ISM Manufacturing, Canada GDP & employment change are on the horizon. The Canadian Dollar (CAD) is middling against the US Dollar (USD) in early Monday trading, and markets are set for a calmer start to the week before high-impact figures for both the US and Canada begin to print in the back half of the trading week.

Loonie traders will be keeping an eye on Gross Domestic Product (GDP) growth figures from Canada on Thursday, with November’s Canadian Net Change in Employment slated for Friday.

On the USD side of the economic calendar, broader markets will see the FX space driven by US Core Personal Consumption Expenditures (PCE) price inflation on Thursday, as well as US ISM Manufacturing Purchasing Managers Index (PMI) figures on Friday.

Monday sees flat action on the Canadian Dollar side as investors await headlines or a change in underlying momentum.
Loonie traders look ahead to Thursday’s Canadian GDP growth, markets expect a rebound to 0.2% annualized growth after the previous quarter’s -0.2% print.

Canadian data releases to be overshadowed by US figures this week, the main focus will be US PCE inflation numbers for October, expected to show a slight decline in inflation price growth from 3.7% to 3.5% for the annualized period into October.

US PCE inflation to print alongside Canadian GDP figures at 13:30 GMT on Thursday.

Friday sees Canadian wages and labor figures alongside November’s US ISM Manufacturing PMI.
The trading week will cap off with a late Friday appearance from Federal Reserve (Fed) Chairman Jerome Powell, due to participate in a “fireside chat” labeled “Navigating Pathways to Economic Mobility” at Atlanta’s Spelman College.