After last Friday’s events, this week the Loonie gets some close attention again due to the upcoming GDP data set, which will be published at 1:30pm London time. With the BoC (Bank of Canada) rate decision ahead next week on Wednesday, and the overall subdued to weak reaction from the CAD to the overall inflation data (2.4% against 2.2% expected), the picture within the USD/CAD currency pair presents itself as follows: every reading below the current expectation of 2% (YoY) could result in another attempt to attack the current yearly highs in the USD/CAD pair around 1.3380/3400 into the weekly close.
Source: Economic Events 30 November 2018 – Admiral Markets’ Forex Calendar
With a break above 1.3400, the next target around 1.3800 (2017 yearly highs) would be activated, probably driven by an dovish rhetoric of the BoC next week, due to a mixed economic outlook, and thanks to the ongoing drop in oil prices. In general and from a technical perspective, a break higher above 1.3400 to new yearly highs remains an option as long as the USD/CAD pair trades above 1.3100/3130.
Source: Admiral Markets MT5 with MT5SE Add-on USDCAD 4-Hour chart (between 28 September 2018 to 29 November 2018). Accessed: 29 November 2018 at 11:00 PM GMT
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:
- The analysis is published for informative purposes only and are in no way to be construed as investment advice or recommendation.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.
- Each of the Analysis is prepared by an independent analyst (hereinafter “Author” based on the Author’s personal estimations.
- To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures refer that refer to any past performance is not a reliable indicator of future results.
- The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.
- Any kind of previous or modeled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.
Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the risks.