|Core CPI m/m||0.8%||0.3%|
Canada’s economy registered a small growth last month. The market was surprised by a bigger GDP than expected but also by the CPI report which showed that prices grew in February. WTI Crude’s price also gained this month and helped the Canadian dollar to gain in front of his counterparts.
Next Tuesday, Gov. Council Member, Murray is expected to speak and after that only on Friday the Employment Change is expected to fall at 7.6k, the Trade Balance to get to 0.2B, the Unemployment Rate is expected to remain unchanged and the Ivey PMI is forecasted at 52.3, better than the previous reading.
USDCAD touched 1.0155 support, but couldn’t go any further. The support area is pretty good because we can find here also the uptrend line. The Canadian dollar gained 0.5 percent and it is possible for it to continue this rally in front of US dollar, if the economy will show a comeback and if the price will close under the support mentioned on a daily time frame.
Another interesting view would be that now a 4th wave might be finished and the 5th is expected to begin. This pattern is taken from the Wave Principle of Ralph Nelson Elliott.