Canadian Dollar sheds further weight, slides into fresh multi-year lows

• The Canadian Dollar continued its march lower on Friday.
• Canada remains inconsequential on the economic calendar.
• CAD traders to wait for next Tuesday’s Canadian CPI print.

The Canadian Dollar (CAD) found fresh lows on Friday as broader markets continues to pivot into the safe haven Greenback. A slight miss in US Retail Sales was all it took to bolster the US Dollar and send USD/CAD into fresh multi-year highs.

Canada continues to remain absent from the economic calendar this week. A week of strictly low-tier, low-impact data has left the Canadian Dollar on the ropes, but next week’s Canadian Consumer Price Index (CPI) inflation print is unlikely to change matters much.

Daily digest market movers: Canadian Dollar waffles to fresh 54-month low

• The Canadian Dollar found a new four and a half year low on Friday, pushing USD/CAD into 1.4090 for the first time since May of 2020.
• Meaningful Canadian economic data remains entirely absent from the economic calendar.
• CAD traders are unlikely to get much of a push from next Tuesday’s Canadian CPI inflation print as the Bank of Canada (BoC) is already accelerating the pace of interest rate cuts in the face of rapidly-cooling inflation and a lopsided economy.
• Canada’s economic metrics continue to rely too much on already-high housing and shelter prices continuing to rise into the stratosphere.
• US Retail Sales beat forecasts, but still eased in October. Headline US Retail Sales eased to 0.4% compared to the expected 0.3%, falling away from September’s revised print of 0.8%.

Canadian Dollar price forecast

The sky’s the limit as the Canadian Dollar (CAD) continues to shed weight against the Greenback; USD/CAD’s fresh push into multi-year highs has the pair testing bids just shy of 1.4100. The pair is on pace to close in the green for a sixth consecutive trading day as the CAD recedes against the US Dollar.

The nearest technical floor sits at the last swing low, lined up nearly perfectly with the 50-day Exponential Moving Average (EMA) near 1.3780.

USD/CAD daily chart