USD/CAD experienced volatility, dropping to 1.3484 before rebounding above 1.3500 after disappointing US Durable Goods Orders data. The pair remains stagnant as traders anticipate US Personal Consumption Expenditure Price Index (PCE) data later in the week.
Canada’s economic calendar is relatively quiet until Wednesday when Q4 Current Account data is due. However, attention will be diverted to the simultaneous release of the US Gross Domestic Product (GDP) report, scheduled for 13:30 GMT. US Durable Goods Orders plunged 6.1% in January, below the -4.5% forecast, with the previous month revised to -0.3%.
Additionally, the Conference Board Consumer Confidence Index fell to 106.7 versus the expected 115.0, and the US Housing Price Index rose only 0.1% in December, missing the 0.3% forecast.
Canada’s Q4 Current Account, forecasted at -1.25 billion, is anticipated to improve from the previous -3.22 billion, but still in negative territory. US Q4 GDP is expected to remain at 3.3% annually.
On Thursday, Canada’s Q4 GDP is anticipated to rebound to 0.8% from -1.1%.
Trade Idea:
Monitor USD/CAD for potential breakout or reversal patterns amid economic data releases and sentiment shifts. Consider trading opportunities based on the pair’s reaction to key data points and technical indicators.