The USD/CAD pair rose during last week, where investors speculated that rising inflationary pressures all around the globe will curb demand for commodities, as this allowed the USD/CAD pair to undergo a highly needed correction to the upside after falling heavily over the past period.
The USD/CAD pair might extend its upside correction over the short term, however, 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 over the medium term.
We should note that markets will be off on Friday due to the Good Friday holiday.
Highlights for this week that will probably affect the USD/CAD pair’s direction are:
Tuesday 11:00, Canada will release 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 0.6% on monthly basis, and by 2.8% on yearly basis, while core CPI is expected to increase by 0.3% on monthly basis, and 1.3% on yearly basis.
Tuesday 12:30, Canada will release the leading indicators index for the month of March, where the leading indicators increased in February by 0.8%, and the Canadian economy probably continued to improve in March.
Tuesday 12:30, Canada will release the wholesale sales index for the month of February, where wholesales sales increased by 1.5 percent in January.
Tuesday 12:30, the U.S. will release the building permits and housing starts, where building permits are expected to rise by 1.1^ in March to 540,000 from 517,000 in February, while housing starts are expected to rise by 9.6% to 525,000 from 479,000 in February.
Wednesday 14:00, the U.S. will release the existing home sales index for the month of March, where existing home sales are expected to rise by 2.5% in March to 5.00 million units, compared to 4.88 million units reported back in February, where the housing market is still struggling to recover fully from its worst slump since the Great Depression.
Thursday 12:30, Canada will release the retail sales index for the month of February, where retail sales declined in January by 0.3% and expectations suggest that retail sales increased in February by 0.5%, while retail sales excluding autos probably increased by 0.5% in February after coming in flat in January.
Thursday 12:30, the U.S. Labor Department will release the weekly jobless claims for the week ending April 16, 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 390K from 412K reported last week.
Thursday 14:00, the U.S. will release the leading indicators index for the month of March, where the leading indicators are considered as a gauge for future economic activities in the next three to six months, the leading indicators are expected to rise by 0.3% in March after rising by 0.8% in February.
Thursday 14:00, the U.S. will release the Philadelphia Fed index for the month of April, where the Philadelphia Fed is expected to ease to 36.8 from 43.4 reported back in March, where the manufacturing sector continues to expand and seems to be on course to recover from its worst slump since the early 1980s.
Originally posted here
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