The Canadian Dollar (CAD) recouped some of its recent losses on Wednesday, showing strength against most major currencies. This comes as a light data day keeps markets subdued and investors await comments from Federal Reserve officials.

• Data Desert for CAD: The absence of Canadian economic data releases leaves the CAD vulnerable to external factors.
• BoC Governor Macklem to Speak: A speech by Bank of Canada Governor Tiff Macklem on Thursday is the main event for the CAD.

Technical Analysis: CAD Rebound Lacking Momentum

• The CAD gained ground against JPY, AUD, GBP, and USD on Wednesday, but overall gains were modest.
• The USD/CAD is edging lower, struggling to hold above 1.3760.
• The pair is currently trading near the 200-hour EMA (Exponential Moving Average) at 1.3700, indicating a period of consolidation.
• Although daily candles remain in bullish territory, repeated failures to surpass 1.3850 suggest potential weakness for the USD/CAD.

The near-term direction of the CAD hinges on broader market sentiment, comments from Fed officials, and Governor Macklem’s speech on Thursday.