The USD/CAD pair declined during last week, where a combination of rising risk appetite amid optimism over the outlook for both the United States and Canada economies boosted confidence over the recovery process, where data from both economies suggested the recovery process is strengthening, in addition to rising energy prices, which provided the Canadian dollar with strength to lead the USD/CAD pair lower.
We should expect rising energy prices to continue to push the pair to the downside, while the pair’s movement will also depend on the important data that will be released, nevertheless, the pair should continue its downside trend.
Highlights for this week that will probably affect the USD/CAD pair’s direction are:
Tuesday 12:30, Canada will release the new housing price index for the month of February, where new housing prices inclined in January by 0.2%, and housing prices are expected to rise by 0.2% in February as well, while compared with a year earlier, new housing prices are expected to rise by 2.0% in February, compared with 1.9% in the prior estimate.
Tuesday 12:30, Canada will release the international merchandise trade balance for the month of February, where the trade surplus is expected to widen to 0.7 billion Canadian dollars, compared with the prior reported surplus of 0.1 billion Canadian dollars, which signals an improvement amid rising energy prices in February.
Tuesday 12:30, the U.S. will release the import price index for March, where import prices rose by 1.4% in February, and expectations signal that import prices rose by 2.1% in March as oil prices continued to rise, while compared with a year earlier, import prices are expected to rise by 9.1% following the prior rise of 6.9%.
Tuesday 12:30, the U.S. will release the trade balance for the month of February, where the trade deficit is expected to narrow to $44.0 billion, from $46.3 billion back in January, as the falling value of the U.S. dollar seem to have helped in narrowing the deficit in February.
Tuesday 13:00, the Bank of Canada will announce its decision on interest rates, where the BOC is expected to leave the benchmark interest rates unchanged at 1.00 percent.
Wednesday 12:30, the U.S. will release the retail sales index for the month of March, where retail sales rose in February by 1.0% and expectations signal that retail sales rose by 0.5 percent in March, as consumer spending continues to improve over a gradual pace.
Wednesday 18:00, the Fed will release the Beige Book, where the Beige Book is expected to show that economic activities continued to expand at a moderate rate, while conditions in the labor market improved as well, and inflationary pressures continued to rise amid rising energy prices.
Thursday 12:30, the U.S. Labor Department will release the weekly jobless claims for the week ending April 9, where conditions in the labor market seem to have improved recently, and jobless claims are expected to reflect that improvement, where jobless claims are expected to drop to 380K from 382K reported last week.
Thursday 12:30, the producer price index will be released for March, where PPI is expected to have continued to rise amid rising energy prices, as the report is expected to show that headline PPI increased by 1.1% on monthly basis, and by 6.2% on yearly basis, while core PPI is expected to increase by 0.2% on monthly basis, and 1.9% on yearly basis.
Friday 12:30, the consumer price index will be released for March, where CPI is expected to have continued to rise amid rising energy prices, as the report is expected to show that headline CPI increased by 0.5% on monthly basis, and by 2.6% on yearly basis, while core CPI is expected to increase by 0.2% on monthly basis, and 1.2% on yearly basis.
Friday 12:30, the empire manufacturing index will be released for April, where the index is expected to show that manufacturing activities eased to 16.90 in April from 17.50 in March.
Friday 13:15, industrial production is expected to rise by 0.6% in March after declining by 0.1% back in February and capacity utilization is expected to rise to 77.4% in March from 76.3% in February.
Friday 13:55, the University of Michigan is expected to show that consumer confidence rose to 69.0 in April’s preliminary estimate from 67.5 reported in March.
Originally posted here
Read more about Forex technical analysis, Forex fundamental analysis and Forex news on ForexMansion.com
About ForexMansion.com:
www.ForexMansion.com is a part of the Finance Mansion Network which operates global financial websites. Our goal is to provide our readers with the most accurate, quality and up-to-date technical analysis, fundamental analysis and news in order to assist them in making the right financial decisions.
The Finance Mansion Network includes www.FinanceMansion.com,www.ForexMansion.com, www.StocksMansion.com, www.CommoditiesMansion and many more.
