- GDP: Thursday, 12:30. Canada releases GDP on a monthly basis. Canada’s economy slowed to 0.1% in January, down from 0.3% a month earlier. The downturn is expected to continue in February, with a forecast of 0.0%.
- Raw Materials Price Index: Thursday, 12:30. The indicator has posted back-to-back declines, as inflation levels remain low. In February, the index fell by 4.7%, worse than the estimate of -2.0 percent. This marked the sharpest decline since July. We now await the March data.
- Manufacturing PMI: Friday, 13:30. After six successive readings pointing to expansion, the indicator slipped below the 50.0 level in March, falling to 46.1 points. Will we see an improvement in the upcoming release?
USD/CAD Technical Analysis
Technical lines from top to bottom:
1.4480 was an important cushion in April 2000. 1.4310 is next.
1.4159 (mentioned last week) has some breathing room in resistance.
1.4019 has switched to support after USD/CAD gained ground last week.
The round number of 1.39 has some breathing room in support. 1.3757 is next.
1.3660 is the final support level for now.
I remain bullish on USD/CAD
The outlook for the Canadian dollar remains negative, as economic numbers are reflecting the economic fallout due to Covid-19. Risk appetite for minor currencies like the Canadian dollar remains weak. As well, low oil prices are also weighing on the Canadian dollar.
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