Canadian Dollar claws back ground on data-light Wednesday

• Canadian Dollar rebounds after previous day's downside.
• Canada is absent from the economic calendar on Wednesday.
• BoC's Macklem due Thursday to deliver latest Financial System Review.

The Canadian Dollar (CAD) rebounded across broader markets on Wednesday, regaining ground lost in the previous sessions. Markets remain thin as traders await meaningful data and watch for talking points from Federal Reserve (Fed) officials.

Canada is entirely absent from Wednesday's data docket, leaving CAD at the mercy of broader market flows. Bank of Canada (BoC) Governor Tiff Macklem will make an appearance on Thursday while delivering the BoC's Financial System Review in Ottawa.

Daily digest market movers: Quiet markets give CAD room to recover lost ground

• Canadian Dollar squeezes out scant gains across the board on quiet Wednesday.
• Fedspeak remains a key risk to market sentiment as Fed officials try to soothe the idea of higher rates for longer over market sentiment.
• [Fed Collins: The job market is coming to a better balance] (https://www.fxstreet.com/news/fed-collins-the-job-market-is-coming-to-a-better-balance-202405081555)
• Thursday's BoC Financial System Review headed by BoC Gov Macklem will allow CAD traders to look closer at what the BoC is watching in the Canadian economy.
• Friday will close out the trading week with Canadian labor figures. The Canadian Unemployment Rate is expected to tick up to 6.2% in April from 6.1%, while Net Change in Employment is expected to show 18.8K net jobs added over the month of April compared to the previous -2.2K decline.

Technical analysis: Canadian Dollar claws back lost ground, but momentum remains tepid

The Canadian Dollar (CAD) is broadly firmer on Wednesday, gaining half a percent against the Japanese Yen (JPY) and has stepped a fifth of a percent higher against the Australian Dollar (AUD). Elsewhere, gains remain thin with the CAD stepping up around a tenth of a percent against the Pound Sterling (GBP) and the US Dollar (USD).

The Canadian Dollar's rebound on Wednesday drags the USD/CAD down, pricing in a near-term fumble of the 1.3760 level. The pair is returning to the 200-hour Exponential Moving Average (EMA) near 1.3700, building out a rough congestion pattern.

Daily candles still hold bullish territory above the 200-day EMA at 1.3541, but repeated failures to retake the last swing high near 1.3850 leave the USD/CAD exposed to a pullback into familiar levels.

USD/CAD hourly chart

USD/CAD daily chart