USD/CAD Forecast Apr. 3-7

US consumer confidence sparkled in March, as consumers remain confident about the economy. Canadian GDP posted a strong gain of 0.6%, above the forecast of 0.3%.

USD/CAD daily graph with support and resistance lines on it. Click to enlarge:

1. RBC Manufacturing PMI: Monday, 13:30.  The PMI has improved over five straight months and continues to point to expansion. In January, the index rose to 54.7 points.
2. BoC Business Outlook Survey:  Monday, 14:30.  The survey is released quarterly and is based on 100 businesses, which rate business conditions, hiring and spending. A positive report could send the Canadian dollar higher.
3. Trade Balance: Tuesday, 12:30. Canada’s trade surplus dipped to C$0.8 billion in January, well above the forecast of C$0.2 billion. The downward trend is expected to continue in February, with an estimate of C$0.7 billion.
4. Building Permits:  Thursday, 12:30. The indicator posted a strong gain of 5.4%, above the estimate of 3.1%. This follows a streak of two straight declines.
5. Employment Change: Friday, 12:30. This is one of the most important indicators and an unexpected reading can have a strong impact on the direction of USD/CAD. The indicator softened to 15.3 thousand in February, crushing the estimate of 0.6 thousand. The downward trend is expected to continue in March, with a forecast of 5.7 thousand. The unemployment rate is expected to edge up to 6.7%.
6. Ivey PMI: Friday, 12:30. In February, the indicator slipped to 55.0 in February, short of the forecast of 58.9 points. The index is expected to improve to 56.3 in the March report.

* All times are GMT

USD/CAD Technical Analysis