The Canadian Dollar (CAD) showed modest gains on Thursday compared to other currencies, but it still struggles against a recovering US Dollar (USD).

Factors Affecting the CAD:

• Limited Canadian Data: No major economic data releases from Canada today, with focus shifting to next week’s CPI report.
• US Data Misses Expectations: Housing starts and unemployment claims data in the US came in slightly below forecasts, offering some support to the CAD.
• Dominant Fedspeak: Upcoming speeches from Federal Reserve officials are likely to be the main market driver.

Technical Analysis (USD/CAD):

• USD Finding Support: USD/CAD hovers near the 1.3600 level, finding technical support in a familiar demand zone (1.3660).
• CAD Testing Resistance: The recent rally pushed USD/CAD down to 1.3590, testing a four-week high for the CAD before the USD recovered.
• Short-Term Bearish Signals: Despite the USD’s rise, USD/CAD trades below its 50-day EMA (1.3637), indicating near-term bearishness.

The CAD’s gains are temporary, and the USD remains the dominant force. Upcoming Fed pronouncements and next week’s Canadian CPI data will likely influence the direction of the currency pair.