Market Analysis: Canadian inflation in focus this Wednesday – USD/CAD eyeing 1.3300 again?

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  • 28.02.2019
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<p><a href=””><img style=”width:auto;” class=”img-responsive” src=”” alt=”February 27 economic events calendar” rel=”” style=””></a></p><p><em>Source: Economic Events February 27, 2019 – </em><a href=””><em>Admiral Markets’ Forex Calendar</em></a></p>
<p>When looking at today’s economic calendar, it seems quite packed – with the Canadian inflation rate acting as the main event. </p><p>The Canadian Dollar has been a point of focus for quite a while now, not only from a fundamental perspective, but also due to some interesting technical developments.</p><p>First, several important data sets from the beginning of 2019 brought disappointing news. Second, Deputy Governor of the BoC Timothy Lane stated in a speech titled <em>”</em><a href=”” target=”_blank”>Taking Precautions: The Canadian Approach to Foreign Reserves Management</a><em>”</em>, that the BoC is closely monitoring the relatively recent use of CAD as foreign currency by other nations, and that past sharp CAD exchange rate movements have helped the Canadian economy to adjust to shocks – while the BoC is ready to intervene in markets if it is necessary. And as a result, scepticism around the CAD arose. </p><p>Even though the USD can be considered weak (as discussed in last Monday’s <a href=””>weekly market outlook</a>) and USD/CAD attacked its trend line as displayed in the daily chart below, a sustainable break failed to appear. </p><p>With all this in mind, and when taking today’s inflation data into consideration, another disappointing data set after January’s could result in an acceleration in USD/CAD on the upside again. Despite this, given current scepticism towards the USD, a break above 1.3370/3400 is unlikely to happen in the coming days. </p><p>Still, if bulls succeed sometime in the future, further gains up to 1.3670/3700 can be favoured.</p><p><a href=””><img style=”width:auto;” class=”img-responsive” src=””></a></p><p><em>Source: Admiral Markets </em><a href=”″><em>MT5</em></a><em> with </em><a href=””><em>MT5-SE Add-on</em></a><em> USD/CAD Daily chart (between November 24, 2017, to February 27, 2019). Accessed: February 27, 2019, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.</em></p><p>In 2014, the value of the USD/CAD increased by 9.4%, in 2015, it increased by 19.1%, in 2016, it fell by 2.9%, in 2017, it fell by 6.4%, in 2018, it increased by 8.4%, meaning that after five years, it was up by 28.4%.</p><p><a href=”″><a href=””><img style=”width:auto;” class=”img-responsive” src=”” style=”” alt=”Download MetaTrader 5 and begin trading today!” rel=””></a></a></p><p><em>Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter “Analysis”) published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:</em></p><ol><li>This is a marketing communication. 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