The Canadian dollar was almost unchanged last week, as USD/CAD remained in 1.20-territory. There are four releases in the upcoming week, including GDP. Here is an outlook for the highlights and an updated technical analysis for USD/CAD. There was no tier-1 data in Canada last week. In the US, Conference Board Consumer Confidence Consumer Confidence held steady in May, at 117.2. This was down marginally from 117.5 in April. Second-estimate GDP for the first quarter came in unchanged at 6.4%, confirming the initial reading. Unemployment claims fell to a new post-Covid low of 406 thousand, down from 444 thousand. Durable goods orders disappointed with a read of -1.3% in April, its second decline in three months. The PCE index, the Fed’s preferred inflation gauge, jumped to 3.6% in April, up from 2.2%. This could lift the US dollar if investors believe that the Fed will consider tapering QE. USD/CAD daily graph with resistance and support lines on it. Click to enlarge: Current Account: Tuesday, 12:30. Canada has not posted a current account surplus since 2008. The estimate for Q1 of 2021 stands at C$-8.3 billion. GDP: Tuesday, 12:30. Canada releases GDP on a monthly basis. After a weak gain of 0.4% in March, the economy is projected to show a gain of 1.0% in April. Employment Report: Friday, 12:30. The economy shed 207.1 thousand jobs in April and we will now receive the May data. The unemployment rate is expected to tick upwards to 8.2% in May, up from 8.1%. Ivey PMI: Friday, 14:30. The PMI slowed to 60.6 in April, down sharply from 72.9. We now await the May data. Technical lines from top to bottom: 1.2267 has held in resistance since late early in May. 1.2205 is next. 1.2136 was tested late in the week. 1.2074 is an immediate line of support. 1.2005 is protecting the symbolic 1.20 level. 1.1943 has held in support since 2015. 1.1874 (mentioned last week) is the final line of support for now. I am neutral on USD/CAD The Canadian dollar took a pause last week, but has shown strong gains in the second quarter. With the US economy continuing to improve, any hint of a taper from the Fed could boost the US dollar. Follow us on Sticher or iTunes Further reading: 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. Safe Trading! Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher Canadian Dollar ForecastMinorsWeekly Forex Forecasts share Read Next GBP/USD Forecast May 31-June 4 – PMI reports in focus Kenny Fisher 1 year The Canadian dollar was almost unchanged last week, as USD/CAD remained in 1.20-territory. There are four releases in the upcoming week, including GDP. Here is an outlook for the highlights and an updated technical analysis for USD/CAD. There was no tier-1 data in Canada last week. … Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
There was no tier-1 data in Canada last week. In the US, Conference Board Consumer Confidence Consumer Confidence held steady in May, at 117.2. This was down marginally from 117.5 in April. Second-estimate GDP for the first quarter came in unchanged at 6.4%, confirming the initial reading. Unemployment claims fell to a new post-Covid low of 406 thousand, down from 444 thousand. Durable goods orders disappointed with a read of -1.3% in April, its second decline in three months. The PCE index, the Fed’s preferred inflation gauge, jumped to 3.6% in April, up from 2.2%. This could lift the US dollar if investors believe that the Fed will consider tapering QE.
Current Account: Tuesday, 12:30. Canada has not posted a current account surplus since 2008. The estimate for Q1 of 2021 stands at C$-8.3 billion. GDP: Tuesday, 12:30. Canada releases GDP on a monthly basis. After a weak gain of 0.4% in March, the economy is projected to show a gain of 1.0% in April. Employment Report: Friday, 12:30. The economy shed 207.1 thousand jobs in April and we will now receive the May data. The unemployment rate is expected to tick upwards to 8.2% in May, up from 8.1%. Ivey PMI: Friday, 14:30. The PMI slowed to 60.6 in April, down sharply from 72.9. We now await the May data. Technical lines from top to bottom:
