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The BoC business outlook survey will provide more direction to the Loonie later this morning

CAD - Canadian Dollar

The USD/CAD pair opens lower this morning (stronger Loonie) at 1.3318. However, earlier, it had been trading at 1.3298, but it is increasing along with a moderate correction in the price of crude oil, which is falling 0.55 percent at the time of this writing. It is good to keep in mind that crude oil is trading in its sixth weekly advance. The unrest in Libya and Sudan raised supply concerns in the crude oil market, also helped by OPEC cuts.

The most crucial piece of information for today is the BoC business outlook survey to be released at 10:30 am EST. This report is highly respected, given its source and timing in relation to interest rate decisions, and it is considered a leading indicator of economic health and a snapshot of business sentiment.

Tomorrow, manufacturing sales will be released. They are expected to decline by 0.1 percent in February, after a healthy gain of 1.0 percent in January.

Technically speaking, for the USD/CAD pair, an important support is 1.3290 and a key resistance is 1.3386. Given that the rate is close to the support, the next support level would be 1.3255.

Key Movers

Mario Draghi expressed confidence that the Eurozone would bounce back, saying some of the aspects that have retained growth appear to be abating. Chief Economist Peter Praet, a member of the ECB's executive board, said there are good reasons to consider that the circumstances are stabilizing after an economic deceleration forced the ECB to announce exceptional support and delay rate increases beyond this year.

There is a disagreement on the board of the ECB over how to handle the negative rates, as at least one member thinks there is no need for tiering rates to help out banks.

Technically speaking, for the EUR/CAD pair, an important support is 1.5066 and a key resistance is 1.5172.

Expected Ranges

USD/CAD: 1.3273 - 1.3385 ▲

EUR/CAD: 1.5066 - 1.5172 ▲

GBP/CAD: 1.7508 - 1.7606 ▲

AUD/CAD: 0.9563 - 0.9612 ▲

NZD/CAD: 0.9015 - 0.9075 ▲