The Canadian dollar posted sharp losses at the end of the week and USD/CAD rose close to 1 percent on the week.
There are four events in the upcoming week, including GDP. Here is an outlook for the highlights and an updated technical analysis for USD/CAD.
Canada’s data calendar was light last week. Corporate Profits posted a second straight gain, at 7.9%. On the inflation front, the Raw Materials Price Index rose 5.7%, above expectations and its highest gain since January.
In the US, Fed Chair Powell had a dovish message for the markets in his testimony before Congress. Second-estimate GDP for Q4 came in at 4.1%, revised upwards from 4.1%. There was positive news from Durable Goods reports, with strong acceleration in January. The headline read jumped 3.4% while Core Durable Goods rose 1.4%.
Feb 26, 2021 15:02 GMTFXStreet News
Raw Materials Price Index in Canada rose sharply in January.
USD/CAD continues to trade in the positive territory.
Prices for products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), rose by 2% in January, the data published by Statistics Canada showed on Friday. This reading followed December’s increase of 1.5%.
Further details of the publication revealed that the Raw Materials Price Index increased by 5.7% during the same period.
Market reaction
The USD/CAD pair edged slightly lower from the daily highs after this report and was last seen gaining 0.26% on the day at 1.2632.Get the 5 most predictable currency pairs
Canada s industrial product and raw materials prices on rise - World News sina.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from sina.com Daily Mail and Mail on Sunday newspapers.
USD/CAD continues to show limited movement. There are three events on the calendar in the upcoming week, including Employment Change. Here is an outlook for the highlights and an updated technical analysis for USD/CAD.
Canada Building Permits showed a decline of 4.1% in December, the second decline in three months. Canada GDP in November was unexpectedly strong with a gain of 0.7%, up from 0.4%. This reading easily beat the forecast of 0.4%. The Raw Materials Price Index jumped 3.5% in December, its highest level in six months.
In the US, CB Consumer Confidence rose to 89.3, up from 87.1 beforehand. Durable Goods Orders continued to slip, falling to 0.2% in December. This was well short of the forecast of 1.0%. The Federal Reserve policy meeting reiterated a dovish stance and Fed Chair Powell poured cold water on speculation that the Fed would taper its QE program in the near future. Advance GDP for Q1 posted a respectable gain of 4.0%, close to the estimate of 4.2%.
OTTAWA, Jan. 29 (Xinhua) Prices for products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), increased 1.5 percent in December 2020, according to Statistics Canada on Friday.