The Canadian Dollar (CAD) kicked off the trading week with a flat performance against the US Dollar (USD), mirroring the lack of momentum in the broader currency markets.expand_more As investors digest Friday’s US jobs report, volatility persists even as directional movement remains subdued.

Canada’s economic calendar is notably quiet on Monday, with only low-tier data releases scheduled throughout the week. While a speech by Bank of Canada (BoC) Governor Tiff Macklem on Wednesday may offer some insights, the market’s focus will likely be on a pivotal US Consumer Price Index (CPI) report and the Federal Reserve’s (Fed) interest rate decision, also due on Wednesday.

Market Drivers: CAD Drifts as US Data and Fed Decision Loom

• The Canadian Dollar remains unchanged against the US Dollar as the post-NFP lull continues.exclamation
• Investors are keenly anticipating Wednesday’s US inflation data and the Fed’s updated interest rate projections.
• A recent NY Fed consumer survey revealed lingering concerns about the long-term inflation outlook, with five-year inflation expectations ticking up to 3.0%.expand_more
• BoC Governor Macklem’s commentary is expected to be overshadowed by market reactions to the Fed’s policy announcement.exclamation

Technical Analysis: USD/CAD Stalls Below 1.3800

The Canadian Dollar is exhibiting a mixed performance, holding steady against the US Dollar while making slight gains against the Euro and losing ground to the Australian Dollar.

USD/CAD is currently stuck just below the 1.3800 handle, with Friday’s upward momentum failing to carry over into the new week.expand_more However, sellers haven’t been able to seize control either.exclamation

Intraday buyers are targeting the 1.3780 level, while bears aim to push the pair back towards 1.3700. The overall trend for USD/CAD remains unclear, with a 3.9% year-to-date gain but still below the April peak of 1.3846.