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Forex - USD/CAD weekly outlook: June 21-25

Published 06/20/2010, 09:33 AM
USD/CAD
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Investing.com – The Canadian dollar extended its rally against the greenback last week, climbing to a 5-week high as sharpening risk appetite boosted demand for growth-linked currencies.

USD/CAD hit 1.0207 at the close of trade on Friday, it’s lowest since May 13, shedding 1.3% over the week. The pair is likely to find resistance at 1.0337, Thursday’s high and support at 1.0099, the low of May 3.

The loonie’s gains came as fears over the euro zone sovereign debt crisis eased, leading to increased risk appetite.

Next week will see Canada publish key data on retail sales and consumer price inflation.

Meanwhile, the United States is due to publish key data on unemployment claims, durable goods orders and the housing market. The U.S. Federal Reserve is also scheduled to make a key interest rate decision, which will be relayed in a heavily anticipated statement.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/CAD. The guide begins on Tuesday, since there are no such events on Monday.

Tuesday, June 22


An industry group, the National Association of Realtors, will release key data on existing U.S. home sales, a leading indicator of economic health.

Industry data is also due to be published on the U.S. manufacturing sector, and the U.S. treasury secretary, Timothy Geithner, is due to testify in Washington, D.C.

Canada will publish key data on consumer price inflation.

Wednesday, June 23

The U.S. will release a report on new home sales, a key signal of the condition of the housing market and of the country's overall economic health.

Also Wednesday, the Fed will announce a decision on its benchmark interest rate, the Federal Funds Rate. The Federal Open Market Committee will relay the decision in a statement that includes important commentary on the U.S. economic outlook.

The U.S. Energy Information Administration will also publish weekly data on crude oil inventories, which also affects the loonie, due to Canada’s sizable energy sector.

Canada will then release a key monthly report on retail sales, the primary gauge of consumer spending.

Thursday, June 24

The U.S. will publish key data on durable goods orders, a leading indicator of production and on initial jobless claims, a key signal of overall economic health.

Also Thursday, the U.S. Energy Information Administration will release a report on natural gas storage.

Friday, June 25

The U.S. is to publish key quarterly data on its gross domestic product, the broadest measure of economic activity.

Later in the day, the University of Michigan will release the results of surveys on U.S. consumer sentiment and inflation expectations.


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