USDCAD short on CAD GDP data?
Now that we have had the data from the BoJ, I am focusing on the news that is coming out later today. At 1:30pm my time we receive the Canadian GDP m/m, which is expected to come in at 0.2% and down from the previous reading of 0.5%. So anything stringer and the CAD will strengthen. Then we also have the US Core PCE Price Index m/m which is expected to come in unchanged at 0.3%. The Fed looks at this data to help make decisions on whether to change the policy rate or not.
Oil has some imbalances above that it could go back and retest in the near future.
Higher oil price is always good for the Canadian dollar.
The US dollar index still looks weak in the higher time frames.
With the US dollar strengthening against the yen, this is weakening the yen. Which makes it more expensive for the Japanese to buy oil. This will help push inflationary pressures onto the Japanese economy. There is also a chance then that Japan buys less oil and the price of oil comes lower.
Higher oil price is always good for the Canadian dollar.
The US dollar index still looks weak in the higher time frames.
With the US dollar strengthening against the yen, this is weakening the yen. Which makes it more expensive for the Japanese to buy oil. This will help push inflationary pressures onto the Japanese economy. There is also a chance then that Japan buys less oil and the price of oil comes lower.
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