Canadian Dollar looking for early gains against US Dollar ahead of upcoming BoC rate call

• Canadian Dollar catching some lift as the broad-market US Dollar Index recedes.
• The Bank of Canada lands with its next rate call on Wednesday.
• Market sentiment is improving on Monday, sending the Greenback lower.

The Canadian Dollar (CAD) is finding some lift to kick off the new trading week, bolstered by investors finding their risk appetite in early trading. With the US Purchasing Manager Index (PMI), US Gross Domestic Product (GDP), and US Personal Consumption Expenditure (PCE) Index data all due in the upcoming week, the US Dollar (USD) is going to see plenty of play in the markets in the coming days.

The Bank of Canada (BoC) brings forth its latest rate call on Wednesday with a press conference to follow. The BoC holding their reference rate at 5% is a foregone conclusion, but investors will be watching for any hints of when the Canadian central bank will begin looking at rate cuts.

Daily Digest Market Movers: Canadian Dollar buoyed by US Dollar selling pressure

• The CAD is getting bolstered by broad-market pressure forcing down the USD.
• Crude Oil is also seeing declines for Monday, limiting upside potential in the oil-backed Loonie.
• US PMI figures will be released on Tuesday, overshadowing low-impact Canadian housing prices.
• Canadian New Housing Price Index is expected to show 0.1% gains in September.
• US PMI components are expected to decline slightly; Manufacturing is forecast at 49.5 (last 49.8), and Services is seen at 49.9 (last 50.1).
• The BoC’s next rate call is broadly anticipated to hold at 5%, and investors are hoping for signs that the Canadian central bank will start looking ahead to rate cuts sooner rather than later.
• Potential supply constraints stemming from the Gaza Strip conflict are easing as diplomatic efforts are underway to cool Middle East tensions, pulling back oil bids.

Technical Analysis: Canadian Dollar finds room to stretch in Monday's mild US Dollar sell-off

The Canadian Dollar (CAD) is getting a bump up the charts as the US Dollar wanes across the broader market space, taking the USD/CAD lower on Monday and testing below 1.3700.

After Friday’s bump into its highest bids in almost two weeks, the USD/CAD is fumbling the 1.3700 handle, setting an intraday low of 1.3675 after slipping from the day’s peak at 1.3736.

Monday’s chart action has the USD/CAD set to print an inside candle to kick off the week, and traders will be keeping an eye on any breakouts from immediate chart territory. Near-term technical support sits at the 50-day Simple Moving Average (SMA), which is currently rising into 1.3600, while the ceiling sits at the last swing high into 1.3785.