April 30, 2010
After hitting a high of 1.0198 this week, the USDCAD fell closer and closer to the 1.0000 handle in the past couple of days. Canada didn't release any economic reports yesterday but the Loonie's recent rally suggests that traders could be anticipating some good news from Canada today.
Would Canada's GDP once again result to an upside surprise? Their February GDP reading, which is due 12:30 pm GMT today, could show that the Canadian economy expanded by 0.5% during the month, slightly lower than the 0.6% growth seen last January. But seeing how Canada's monthly GDP reading has been posting better than expected results since November, there could be a chance that the February figure beats the consensus yet again. If it does, the USDCAD might make it all the way below parity to retest its former lows.
Also due from Canada today are its raw materials price index and industrial product price index, both of which are leading indicators of consumer inflation. Prices of raw materials are expected to be up by 0.9% while industrial product prices could post a 0.2% uptick for February. Watch out for those reports at 12:30 pm GMT.
"The only cable I watch is the pound baby."