- The Canadian dollar was mostly flat near familiar territory on Thursday.
- Canada's GDP statistics released on Friday will capture the attention of looney traders.
- Market volume is significantly lower as the US market is closed for Thanksgiving.
The Canadian dollar (CAD) traded thin against the US dollar on Thursday, holding the 1.4000 handle as global markets slowed late in the trading week as a lack of capital inflows from US financial institutions reduced overall market volume. It was done. US markets are closed today for the Thanksgiving holiday, and the shortened US market day on Friday also bodes poorly for consistent market action to end the week.
Canada is scheduled to release an update on gross domestic product (GDP) growth on Friday, leaving loonie traders in a tight spot heading into Thursday. Still, Canada's current account data came in better than expected, helping to push the Canadian dollar slightly higher on the day.
Factors driving the daily digest market: Canadian dollar supported by holiday market
- On Thanksgiving Thursday, the Canadian dollar rose by just one-tenth of a percent.
- Market flow has dried up as the US is on holiday. Trading volumes on Friday are also likely to be limited.
- Canada's current account balance for the third quarter was -3.23 billion, higher than the expected -9.3 billion and recovered from the previous quarter's revised estimate of -4.7 billion of -8.4 billion.
- On Friday, Canada's third-quarter GDP growth is expected to slow to just 1.0% on an annualized basis, down from 2.1% previously.
- On a month-on-month basis, Canada's GDP is expected to rise to 0.3% month-on-month in September, compared to a flat 0.0% in August.
Canadian dollar price prediction
The Canadian dollar (CAD) has shown a modest rebound after hitting a 55-month low this week. The Canadian dollar has gained an intraday foothold against the US dollar, pulling the USD/CAD pair back towards the 1.4000 handle. This pair remains in high territory due to the overall bull run in the greenback market. Still, technical traders will find it increasingly difficult to ignore the increasing likelihood of a cyclical turnaround on the long-term chart.
USD/CAD daily chart
economic indicators
Gross domestic product (month-on-month)
Gross domestic product (GDP) announced by Statistics Canada Measures the total value of all goods and services produced in Canada during a specific period on a monthly and quarterly basis. GDP is considered the main indicator of economic activity in Canada. Monthly change compares economic activity in the base month with the previous month. Generally, higher numbers are considered bullish for the Canadian dollar (CAD), while lower numbers are considered bearish.
