Canadian Dollar finds some upside on Wednesday

• The Canadian Dollar rose on Wednesday, buoyed by Greenback weakness.
• Canada reported an upswing in housing prices, bolstering the CAD further.
• Broader markets are pivoting to the start of this year’s Jackson Hole economic summit.

The Canadian Dollar (CAD) found some legroom on Wednesday, rising against key counter-currencies through the US market session and extended a recent win streak against the US Dollar as broad market sentiment pins on the high end with investors anticipating a shift in the Federal Reserve’s (Fed) rate cut stance.

Canada reported a slight upswing in recent housing price figures, prompting a thin bullish bid in the Canadian Dollar. The CAD has eased into a multi-month high against the Greenback, and is clawing back recent losses against other major currencies in recent days.

Daily digest market movers: Canadian Dollar finds the high side on higher housing prices

• The Canadian New Housing Price Index rose 0.1% YoY in July, over and above the previous -0.2% contraction.
• The Canadian Raw Material Price Index also rose in July, accelerating 0.7% versus the forecast -0.9% and improving from the previous month’s -1.4% backslide.
• The US Bureau of Labor Statistics introduced a sharp revision to March’s Nonfarm Payrolls (NFP), cutting the initial print by over 800K jobs.
• The Fed’s latest Meeting Minutes revealed that the US central bank had already begun discussions about when to deliver rate cuts as early as July.
• The out-of-cycle NFP adjustment and dovish Fed print help to drive market bets of a September rate cut even higher.
• Nearly half of all rate traders now expect a double cut for 50 bps from the Fed on September 18.

Canadian Dollar price forecast: USD/CAD bulls set to run out of steam below 1.3600

The Canadian Dollar (CAD) rose one-fifth of one percent against the US Dollar on Wednesday, chalking in a fourth straight gain against the Greenback. The CAD has closed higher against the USD for all but three of the last 14 straight trading days, and has recovered 2.66% bottom-to-top against the Greenback after hitting a 22-month low earlier this month.

USD/CAD pierced below the 1.3600 handle, and has extended a decline below the 200-day Exponential Moving Average (EMA) at 1.3640. The pair is running into oversold territory, but a sharp pullback from April’s technical range prices could see a topside draw in the coming days.

USD/CAD daily chart