Here is the most recent USD/CAD Canadian Dollar Outlook. USD/CAD has fallen deeply in the past two weeks. This trend continued this week despite ongoing recession. Apart from GDP, there are 4 more crucial events any loonie trade should carefully look out for this week: Building Permits, Interest Rate decision, Ivey PMI and the Unemployment Rate. Let’s dive into their meaning (and timing) for the loonie. Update, Wednesday, June 3rd, 10:00 GMT: Loonie Stays Behind. The US dollar began the first week of June with another downfall. The Canadian dollar is one of the winners: USD/CAD now trades at 1.0857. Earlier, it dropped under 1.08. The fall goes on. Two weeks ago, I wrote about an important week for the Canadain dollar. After last week’s quiet week, we are loaded with event. Here are the Canadian indicators. Note that 3 of them are on GDP: Canada is unique in providing a monthly GDP figure. GDP for the month of March fell by 0.3% as expected. This sums up to an annualized fall of 5.4% in the first quarter of 2009. Though slightly better than the US, this figure is quite bad. Since this exact result was expected, it only slightly bounced the descent of USD/CAD. Building Permits: Houses are an excellent measure of a country’s economy. Canada’s Building Permits moved like the forex market – wild! Last month, they rose by a whopping 23.5%. This time, they’re expected to drop by 9.2%. Since this number can make a big surprise, it’ll be quite adventurous to be at the market after the release. It’s published on Thursday at 12:30 GMT. Interest Rate decision: The Bank of Canada isn’t expected to raise the Overnight Rate above the bottom. At 0.25%, it can’t go lower. After the BOC exhausted it’s interest rate tools, the focus will be on the BOC Rate Statement. Commodity prices have risen lately. This rise affects Canada’s commodity oriented economy. On the otehr hand, Canada is very dependant on the US. So, will the BOC communicate optimism or pessimism? The wording statement will have a great influence on the USD/CAD. Note the timing: half an hour after the Building Permits. Ivey PMI: Released on Thursday at 14:00 GMT. The Purchasing Managers’ Index supplied by the Richard Ivey School of Business is a highly regarded indicator. Last month, it surprised by scoring above 50 – indicating optimism and economic expansion. This time, it’s predicted to rise from 53.7 to 54.3 – edge higher. If this index will have a different mood than the BOC Rate Statement, the loonie will go quite wild. Unemployment Rate: Canada’s employment market is suffering in this recession. The unemployment rate has risen to 8% from around 6% before the crisis began. It’s predicted to worsen and rise to 8.3%. A worse figure will hurt the Canadian dollar and send USD/CAD upwards. The accompanying figure is the Employment Change, published at the same hour – 11:00 GMT. While it’s not so “famous” as the unemployment rate, it’s no less significant for understanding the job market, and actually the whole economy. After surprising last time and rising by 35.9K, it’s expected to turn negative and fall by about 38K. These figures, released an hour and a half before the American Non-Farm Payrolls, will have a great impact on the loonie. USD/CAD major tehnical lines After breaking the big barrier of 1.1470, USD/CAD fell more and more. 1.08 also serves as support line, since it acted as a resistance line in September 2008. Yup, about 9 months ago. The next line is around 1.04, which served both as a support line and as a resistance line during 2008. And of course, there’s the magical parity number: USD 1: CAD 1. Tha’ts it for the loonie! For further reading: Special coverage for the Aussie: Will Australia go Down Under? Aussie Outlook Special Coverage for the British Pound: Britain’s Got Talent. An overview of the week’s major events, check out the Forex Weekly Outlook. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Expert score 5 Etoro - Best For Beginner & Experts0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 5 Read Review Open My Free Account Your capital is at risk. Canadian Dollar Forecast share Read Next Forex Daily Outlook – June 2nd 2009 Yohay Elam 12 years Here is the most recent USD/CAD Canadian Dollar Outlook. USD/CAD has fallen deeply in the past two weeks. This trend continued this week despite ongoing recession. Apart from GDP, there are 4 more crucial events any loonie trade should carefully look out for this week: Building Permits, Interest Rate decision, Ivey PMI and the Unemployment Rate. Let's dive into their meaning (and timing) for the loonie. Update, Wednesday, June 3rd, 10:00 GMT: Loonie Stays Behind. The US dollar began the first week of June with another downfall. 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