- Manufacturing Sales: Monday, 12:30. Manufacturing Sales gained 0.9% in December, and are expected to jump 2.8% in January.
- Foreign Securities Purchases: Tuesday, 12:30. Purchases fell to C$5.08 billion in December, down sharply from C$11.78 billion. Will we see a rebound in January?
- Inflation Report: Wednesday, 12:30. Headline CPI rose 0.6% in January, its highest level in seven months. Another solid gain is projected for February, with an estimate of 0.7%.
- ADP Nonfarm Employment Report: Thursday, 12:30. The ADP report painted a grim portrait of the labor market in January, with a reading of -231.2 thousand. We now await the February data.
- Retail Sales: Friday, 12:30. Retail sales for December pointed to a decline in consumer spending. The headline read fell by 3.4% and core retail sales came in at -4.1%. Analysts are bracing for another contraction in January, with a forecast of -3.0% for the headline reading and -2.8% for core retail sales.
Technical lines from top to bottom:
We start with resistance at 1.2736.
1.2655 is next.
1.2572 has switched to a resistance role after USD/CAD dropped sharply last week.
1.2491 is an immediate resistance line.
1.2373 (mentioned last week) has held in support since February 2018.
1.2288 is next.
1.2108 is the final support level for now.
I am bearish on USD/CAD
The Canadian dollar has posted two excellent weeks, which presents an opportunity for some profit-taking. The massive US stimulus package has been signed into law, and the expected lift for the economy could give a boost to the US dollar.
- EUR/USD forecast – for everything related to the euro.
- GBP/USD forecast – Pound/dollar projections.
- AUD/USD forecast – analysis for the Aussie dollar.
- USD/CAD forecast – Canadian dollar predictions.
- Forex+ weekly forecast – Outlook for the major events of the week.