In recent market dynamics, the Canadian Dollar has ascended in response to a widespread increase in risk appetite on Friday. Notably, economic data from Canada is scarce not only on Friday but also throughout the upcoming week. The influence of crude oil has played a role as it trims recent losses, contributing to the support of the Canadian Dollar.
The Canadian Dollar (CAD) exhibited a modest ascent across the FX board on Friday, reclaiming ground from recent declines. Despite the recovery, gains remained slender, and the charts displayed a degree of volatility as investors recalibrated their positions and expectations in the aftermath of the surprisingly positive US Nonfarm Payrolls (NFP) report for November. The CAD concluded Friday with a marginal uptick of a tenth of a percent against the US Dollar (USD). Notably, its most robust performance was against the Kiwi (NZD), posting a seven-tenths of a percent climb for the last trading day of the week.
Friday saw minimal impactful economic data from Canada, a trend that is set to persist into the next week, with sparse entries on the calendar until the appearance of Bank of Canada (BoC) Governor Tiff Macklem next Friday. Investors anticipate insights from Governor Macklem, who is scheduled to address audience questions following his speech at the Canadian Club of Toronto.
Technical view of the Canadian Dollar
The latter part of November was very bullish, and the price quickly recovered from the threshold of $0.72. The price may be on the trail of the $0.74 price level, which is high in September. This week was a bit bearish, but bulls managed to close the week at a very good level above the 20-day moving average. This week, the market is closing around $0.7357. As the market opens for the new year, we anticipate the continuation of the bullish trend.
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