Canadian Dollar looking for a comeback, seeing moderate lift for Monday

• Canadian Dollar edging higher as risk appetite takes a chance once more.
• Canada CPI inflation data due Tuesday for eager CAD traders.
• Crude Oil easing back for Monday, limiting CAD support.

The Canadian Dollar (CAD) is catching some relief after Friday’s risk-off bids sent the Loonie sharply lower against the US Dollar (USD), and recovery is the name of the game ahead of Tuesday’s Canadian Consumer Price Index (CPI) inflation reading due on Tuesday.

Canadian data isn’t the only action on the economic calendar tomorrow, with US Retail Sales figures due during the American trading session. Markets are anticipating that Canadian CPI will hold flat, and a beat for the datapoint could see inflation expectations increase even further than consumers are already expecting, based on the Bank of Canada’s (BoC) latest Business Outlook Survey. Such a result would also be supportive of CAD.

Daily Digest Market Movers: Canadian Dollar sees Monday gains as new week kicks off

• Canadian CPI to square up against US Retail Sales Tuesday, investors on the lookout.
• US Retail Sales seen declining to 0.3% from 0.6%.
• Canadian CPI inflation forecast to hold steady at 4% for the year into September.
• BoC’s Outlook Survey sees the majority of Canadian consumers expecting further rate hikes in the next twelve months.
• Majority of Canadian businesses report negative impacts from monetary policy, and most expect further pain down the road.
• 55% of Canadians consumers and businesses anticipate a recession sometime next year.
• Crude Oil is seeing a minor stepback on the charts for Monday, limiting Loonie upside.
• Canada Retail Sales to close out the trading week, slated for Friday.
• BoC Survey: Consumers think interest rates will go up over next 12 months

Technical Analysis: Canadian Dollar looking to climb further, sends USD/CAD into 1.3615

The Canadian Dollar (CAD) is seeing a lift as the broad market recovers some risk appetite on Monday, taking the USD/CAD back towards the 1.3600 handle.

The USD/CAD pair opened Monday with bids near 1.3660, easing back towards 1.3600 with the pair currently testing the waters just below 1.3620.

The pair remains down around 1.2% from October’s peak of 1.3785, and the last major swing low on the daily candlesticks is tangled up in the 200-day Simple Moving Average near 1.3450.