Tradervox (Dublin) – The Canadian dollar retreated against the greenback last week but the buck/loonie pair never crossed critical resistances. Some of the events that were major last week included the Core Retail sales for March, which came in weaker than expected. The minimal increment of 0.1 percent on Core Retail sales indicates an improvement in the economy which is good for the loonie. Here are some of the events this week that will affect the cross.
On Wednesday at 12:30, the Raw Materials Price Index report will be released. The previous reading showed a decline of 1.6 percent in March after 0.6 decline in February. Analysts indicated that the decrease was as a result of mineral fuels and crude oil petroleum decreasing but there was some gain in the grain prices. Further, the Industrial Product Price Index (IPPI) increased by 0.2 percent in march due to price increase of petroleum. This time, the RMPI is predicted to come in at 2.1 percent while the IPPI is projected to gain to 0.1 percent.
On Thursday at 12:30 a report on Canadian current account will be released. The last report showed that the current account deficit contracted to $10.3 billion in the fourth quarter last year as a result of a $3.1 billion merchandise surplus, which indicated market improvement. The report is expected to show an increase in the current account deficit to $11.1 billion.
Another report on Friday is expected to change the USD/CAD pair and might determine whether the cross will close on a high or low is the Canada’s GDP report. The economy was reported to contract in February by 0.2 percent against the market expectation of a 0.2 percent growth. The decline will have a negative report for the first quarter growth rate and it may delay an interest rate hike that has been highly predicted. The GDP report is expected to show an expansion of 0.3 percent.
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