June 18, 2012
Despite weaker than expected economic data from Canada, the Loonie was able to chalk up another day of gains against the Greenback on Friday and USD/CAD even gapped lower over the weekend. Will the Canadian dollar be able to hold on to its recent gains?
Last Friday, Canada released its April manufacturing sales report which printed a 0.8% decline. This was significantly weaker than the projected 0.5% uptick and the previous month's 1.5% increase, reflecting a downturn in Canadian manufacturing activity.
However, talks of QE3 from the Fed dampened demand for the U.S. dollar, which enabled the Loonie to end Friday on a positive note.
Today, only the foreign securities report is due from Canada and it is expected to show a rebound from -2.08 billion CAD in March to 3.41 billion CAD in April. A higher than expected figure would reflect stronger demand for Canadian assets, which would be good for the Loonie. Make sure you keep an eye out for the actual release at 12:30 pm GMT.
Later on, Canada will release its wholesale sales figure on Tuesday and its retail sales data on Thursday while Friday has Canada's CPI reports on tap. Don't forget to do your research and stay tuned to my daily commentaries if you plan to trade these releases!
"The only cable I watch is the pound baby."