Canadian Dollar snaps three-day win streak as BoC rate call looms

• The Canadian Dollar appears to have finally run out of steam.
• Key Canadian CPI inflation figures will print this week, slated for Tuesday.
• Another BoC rate call also looms over Loonie markets, due on Wednesday.

The Canadian Dollar (CAD) appears to have run out of steam, snapping a three-day winstreak and paring some of its newfound gains against the US Dollar. Most of the Loonie's near-term gains against the Greenback have come at the hands of a broad-market weakening in USD flows, rather than any particular strength to be found in the CAD itself.

The Bank of Canada (BoC) is poised to deliver another rate call this week, and markets are pondering whether the BoC will try to squeeze one more rate cut into the chute before tariffs begin to take bites out of the economy. Key Canadian Consumer Price Index (CPI) inflation, also due this week, will serve as a handy canary in the coalmine for what kind of moves on interest rates the BoC might be considering.

Daily digest market movers: Canadian Dollar ends bull run as BoC rate call looms

• The Canadian Dollar pared recent gains against the Greenback, pushing USD/CAD back to the 1.3900 level.
• Headline Canadian CPI inflation is expected to hold at 2.6% YoY on Tuesday.
• The BoC's latest rate call is slated for Wednesday.
• The BoC is broadly expected to deliver 50 bps in rate cuts by the end of the year.
• Canadian markets will be cutting the week short for the Easter holiday on Friday.

Canadian Dollar price forecast

The Canadian Dollar took full advantage of a broad-base weakening in Greenback flows recently, rising 3.1% bottom-to-top against the US Dollar and pushing the USD/CAD pair to six-month lows below 1.3850. Momentum is freezing as markets pivot toward key data releases, leaving USD/CAD to churn on the low side of the 200-day Exponential Moving Average (EMA) near 1.4070.

USD/CAD daily chart