The USD/CAD had a tranquil day in yesterday’s session. It traded in a narrow range of 45 pips from 1.3338 to 1.3383, with the key piece of information being the new housing price index month to month and year to year, which came in with no surprise at 0 percent and 0.1 percent respectively.
For next week, the most critical information releases will be the consumer price index on Wednesday and the gross domestic product on Friday. A higher increase in the Canadian CPI number compared with its main counterpart, the US CPI, would influence a stronger Loonie and vice-versa. Last Wednesday, the American CPI (YoY) came in at 2.2 percent, which was the same as expected. For the Canadian economy, the previous CPI YoY came in at 2.4 percent (a month ago); however, the forecast is 2.2 percent for this Wednesday, which is the same as the US CPI. Fundamentally speaking, it would be interesting to see a surprise in the CPI in Canada this Wednesday because it would give us a better idea of where the USD/CAD is going.
This morning, the USD/CAD is trading at 1.3375, after going higher in overnight session and touching a high at the 1.3400 handle. There is no economic data today.