From BNN Bloomberg:

Recent economic indicators and central bank decisions are poised to shape currency markets, with the USD/CAD pair at the center of attention. A surprising increase in crude inventories alongside Canada’s GDP outpacing expectations set the stage for an intriguing week. With the Bank of Canada’s interest rate decision imminent and the U.S. nonfarm payroll data on the horizon, investors are keenly watching for cues on currency dynamics.

Last week’s unexpected surge in crude inventories sent ripples through the market, affecting commodity prices and currency valuations alike. Concurrently, Canada’s GDP growth for the fourth quarter exceeded forecasts, presenting a mixed bag for the Canadian dollar. While robust economic performance typically bolsters a currency, the implications of rising crude inventories complicate the outlook.

The Bank of Canada’s upcoming interest rate decision has become a focal point for market participants. Amid speculation of maintaining the overnight rate, the decision will undoubtedly impact the USD/CAD currency pair. With RBC Economics suggesting a steady rate, all eyes are on how this will play out against the backdrop of a strengthening dollar. The U.S. Federal Reserve’s stance on interest rates continues to influence market sentiment.

The USD/CAD pair’s trajectory is closely tied to upcoming economic releases and central bank decisions. The bullish sentiment for the dollar is reinforced by expectations of a robust U.S. nonfarm payroll report. However, factors such as oil prices and interest rate differentials between the U.S. and Canada remain critical to understanding future movements. Technical indicators suggest a bullish outlook above key resistance levels.



Read more at BNN Bloomberg: USD/CAD Outlook Bullish as Market Eyes Bank of Canada Decision, US NFP Data