Canadian Dollar Stronger ahead of GDP Report

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Canadian Dollar Stronger ahead of GDP Report

Canadian GDP (Gross Domestic Product) report for February will be released Monday at 8:30 Eastern time. The US dollar (USD) has been rising against Canadian dollar (CAD) ahead of the release of the data.

Bank of Canada Governor Carney commented on the strengthening loonie, labeling it as a challenge. He noted that the bank is not consumed by the level of the currency, praising the healthy labor market. He shared his belief that it is sensible to anticipate significant Canadian dollar inflows, and gave assurance of adjusting interest rates appropriate when and if needed.

On a technical point of view, as you can see in the USDCAD daily chart, the pair is trading well below the Ichimoku cloud, approaching a support level of September 2011 at 0.9777. Further declines may be ahead as the pair has already broken a key support of 0.9835. Any rallies should be well capped below 1.0041.

By Kiana Danial at Forex Diva