Canadian Dollar catches a break from selling pressure on Wednesday

• The Canadian Dollar caught a slight bid after getting pushed into multi-year lows.
• Canada remains absent from the economic calendar until Friday.
• Incoming US Thanksgiving holiday to compress market volumes this week.

The Canadian Dollar (CAD) caught a much-needed bid on Wednesday, clawing back a sliver of recently-lost ground after the Loonie was pushed into multi-year lows by a correlated decline in Crude Oil prices earlier in the week. Investors eased up from broad-market Greenback bidding, taking USD/CAD back down toward the 1.4000 handle.

Canada has been functionally absent from the economic calendar this week, with no meaningful data releases on the radar until Friday's Canadian quarterly Gross Domestic Product (GDP) update. US data broadly hit expectations on Wednesday, keeping market sentiment roughly on-balance and giving the Canadian Dollar some breathing room as Greenback bidding eases.

Daily digest market movers: Canadian Dollar claws back ground after multi-year plunge

• The Canadian Dollar gained one quarter of one percent on Wednesday, waking back the early week's fast plunge into 55-month lows.
• Key market drivers on Wednesday were a wide US data dump as markets rush to wrap things up for Thursday's Thanksgiving holiday.
• Markets will also see limited trading hours on Friday, further crimping market volumes during the latter half of the trading week.
• US core Personal Consumption Expenditures Price Index (PCEPI) inflation rose on an annualized basis, but no more than investors expected, keeping market reactions limited.
• Canada's Q3 GDP update, slated for Friday, is expected to shrink to 1.0% on an annualized basis compared to the previous 2.1%, while the monthly GDP estimator is forecast to counter-intuitively swing higher to 0.3% from the previous flat print of 0.0%.

Canadian Dollar price forecast

The Canadian Dollar's (CAD) 55-month low reach this week is seeing a tepid rebound. The CAD has gained an intraday foothold against the US Dollar, dragging the USD/CAD pair back into touch range of the 1.4000 handle. The pair is still caught on the high end following a broad-market bull run in the Greenback, but technical traders will have an increasingly difficult time ignoring the growing potential for a cyclical turnaround in the long-term charts.

USD/CAD daily chart