USD/CAD reversed directions this week, as the Canadian dollar gained close to one cent. The pair closed at 1.0284. This week’s highlights are Core Retail Sales and the Overnight Rate release.
The Canadian dollar took advantage of a sluggish US dollar, as optimism faded over the fiscal agreement hammered out in Congress. Canadian releases were not impressive, as Manufacturing Sales declined and inflation indicators were subdued.
A summary of weekly events during week.
- Wholesale Sales: Monday, 12:30. Wholesale Sales is an important consumer spending indicator. After a sharp decline in July, the indicator bounced back in August, with a strong gain of 1.5%. This beat the estimate of 1.1%. The markets are expecting a much smaller gain for September, with an estimate of 0.6%. Will the indicator once again surprise the markets with a strong gain?
- Core Retail Sales: Tuesday, 12:30. This key indicator is considered more reliable than Retail Sales, since it excludes the volatile automobile sales component. Core Retail Sales were up 1.0% in August, well above the estimate of 0.6%. The markets are bracing for a weak release for September, with an estimate of a 0.2% gain.
- Retail Sales: Tuesday, 12:30. An important consumer spending indicator, Retail Sales posted a gain of 0.6% in August, matching the forecast. The markets are expecting a smaller gain for September, with an estimate of 0.3%.
- BOC Overnight Rate: Wednesday, 14:00. The BOC has maintained its benchmark interest rate at 1.00% for over three years and no change is expected in the upcoming decision. The BOC will announce the new rate in a rate statement.
- BOC Monetary Policy Report: Wednesday, 14:30. Analysts will be reviewing this report carefully, looking for clues as to the BOC’s future monetary policy. BOC Governor Stephen Poloz will hold a press conference shortly afterwards
TECHNICAL BEAM
Following a high 1.0603 recorded 5th July , 2013 up until now this pair has continued bearish. Further downside move is expected for a price target of 0.9999. On completing this WXYZ pattern formation, the pair might make a 1.0207 bullish retracement. For now, we leave the market to decide what pattern of completion to take.
Here is a possible future behavior for this pair.
NOTE: Price predictions produced by FibonacciPrice&PatternTrader may be affected by unforseen events like hurricane, earth quake, flood and other natural disasters consequently changing price patterns already predicted. Hence we advice strict adherence to money management techniques.
HAPPY TRADING
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