Canadian GDP Report

The Canadian GDP for March is expected to increase 0.1% in comparison to February. The annualized first-quarter GDP is expected to slow down to 1.7% from the 2.9% GDP growth reported for the fourth-quarter. Should expectations be confirmed it would point towards an extreme slowdown in growth which is likely to pressure the Canadian Dollar. Forex traders should be careful trading this week and be prepared for a spike in price action after Friday’s GDP report.

So does that mean it will continue to fall till Friday?

Not necessarily. I do expect it to trade around current levels +/- 50 pips until the release on Friday.

But all the experts are saying that it will touch the 1.06 handle. But I hope you are correct. My heart believes you. Waiting for the news today. Do you think that if the Canadian news comes out bad and the US news comes out good, then there will be a hike upside.

Should it breakdown from current support level it could touch 1.0600 which would not bother me as I would view it as a buying opportunity.

But what do you think is the possibility of that happening. If it should happen then my account will close and I will be finished.

Thank you, TheLastBear…

I have been long the CAD/JPY since January and have been building on this position…

There is, in my view, a long-term bullish channel for this pair in particular, picking up from the 91.00 floor

and testing the channel bottom at 92.50; currently, it is knocking on the door of the 94.00 level, but it is too

weak to rise further.

This is coinciding with a weakening USD/CAD, which has dropped a few points already this week, due mainly

to the USA being on holiday and lacking substantial data releases prior to next week’s NFPs… Considering that

Yen crosses have been depreciating across the board, this CAD/JPY move is, in my view, unique and worthy

of pursuing (shoot me, I might be WRONG)!

Cheers.

Great call on CAD/JPY, PipMeHappy! As of writing JPY is weakening once again and the crosses are testing important resistance levels. You’re in a great position if it breaks higher :slight_smile:

USD/CAD is showing a retracement though. 1.0900 might be a good selling opportunity if the GDP report prints to the upside.

It has started to go down again today after the rise yesterday following release of US data. If it goes down to below 1.07 level its goodbye for me. Give me hope.

I think you should take a closer look at how you trade. I mean if one wrong trade will kill your account you lack the funds to trade and you trade way too much volume. It seems that you ignore risk management completely. You should not risk more than 1% of your capital as you seem as a very new trader. Maybe its best for you to spend more time educating yourself about trading before you place another trade.

Yes I do trade with little funds, but my present trade is less than 1% but what scares me is the recent trend that I am seeing across the board -it is the sudden extreme hike and fall of prices. I do study but wont claim myself to be adept enough to be sure of myself. And moreover it is the experts in different sites that confuse me more. Let me be open to you, if the usd/cad drops to a little below .07 - I am gone, and that seems a possibility as I go around and read all the analysis. But what say you? You seem very matured and level headed.

There is no way that you use less than 1% of your funds and have one bad trade kill your account unless you ignored any risk management. I do not know at which point you entered your long position, but still if you deployed 1% you should not be gone. Reading what others say about any asset class should be avoided in my opinion as different ‘experts’ have different time horizons and trading strategies. You will almost always find buy as well as sell recommendations at the same time. I think you should stop trading until you educate yourself much more about trading. The simple fact that sudden price movements concern you is an indicator that you are not ready to trade. Take your time, learn and then slowly start back trading. I would recommend that you only trade 0.01 lots in a mini-account until you achieve consistent returns for several months in a row.

Thank you TheLastBear! The problem is that I trade $1 and with small funds that is dangerous. I will take your advice and hope to learn from you also. I hope it would not be a problem if I ask you questions from time to time regarding my trades. I will message you. I hope thats ok.

You trade $1? As in you have $1 in your trading account? I do not understand why you thought you should trade with $1 or if you can even call that trading. I blame it on terrible advertising or those idiotic no deposit bonuses of a few dollars. It takes money to trade properly (and more so than money it takes knowledge). It sounds like you fell victim to the terrible advertising machinery.

Yes a terrible mistake. Hope I survive this time. Eagerly waiting for tomorrows news to save me.

The Loonie (Canadian Dollar) has recovered most of its losses within an hour, following a less-than-favourable

GDP data (as per image, attached, from DailyFX Economic Calendar): it seems that the temporary thirty-pip

decline was temporary, although as I am typing this (two and a half hours after the event) I notice that the USD/CAD

is on the move higher (after completely retracing its earlier rally to a higher level) and the CAD/JPY, which had

the inverse reaction, is also now taking a secondary turn lower…