- Manufacturing Sales: Thursday, 12:30. After a nasty streak of five straight declines, manufacturing sales climbed 0.5% in February, above the forecast of 0.0%. Will we see an improvement in the March release?
- BoC Financial System Review: Thursday, 14:30. The Bank of Canada publishes its overview of the financial system twice a year. Apart from data about the banks’ situation, the publication also includes economic data. BoC Governor Stephen Poloz will host a follow-up press conference.
- Foreign Securities Purchases: Friday, 12:30. The demand for securities by foreigners was much stronger than anticipated in February. The indicator rose to C$20.6 billion, well above the estimate of C$9.0 billion. Will the March release be just as rosy?
USD/CAD Technical Analysis
Technical lines from top to bottom:
We start with resistance at 1.4310.
1.4159 (mentioned last week) has some breathing room in resistance.
1.4019 has switched to a resistance role after strong losses by USD/CAD last week.
The round number of 1.39 has some breathing room in support. 1.3757 is next.
1.3660 has held in support since mid-March, when USD/CAD posted a significant rally.
1.3550 is the final support level for now.
I remain bullish on USD/CAD
The outlook for the Canadian dollar remains negative, despite last week’s strong performance. Economic conditions remain very weak due to Covid-19 and investors are likely to stick with safe-haven assets like the U.S. dollar.
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