Tradervox.com (Dublin) – Last week, the Canadian dollar came close to parity with the greenback but retracted at the end of the week. This week, the market is expecting the Bank of Canada Business Outlook Survey and the Trade Balance as the main events for the pair. With good reports from the Canadian market last week, the Canadian dollar advance against the dollar. Building Permits in the country climbed by 7.4 percent against the market expectation of 5.2 percent. The job market was also doing well with 7,300 jobs being added while the unemployment rate dropped by 7.2 percent.
On Monday, the Bank of Canada Business Outlook Survey will be released at 1430. A survey by the Bank of Canada showed a renewed optimism in Canadian business expectations in sales, investment, and hiring. Companies in the country are willing to increase their investment in Machinery which is a sign of better economic prospects.
After the BOC data, the Housing Starts will be the next report from Canada that will be the focus of the market on Tuesday. This figure had moderated to 212,000 in May following a 244,900 figure in April. Economists had predicted this decline after slowdown in urban starts plunged by 20.7 percent. The report is expected to show a drop to 202,000.
Another report that will shape sentiments about the USD/CAD pair is the Trade Balance data to be released on Wednesday at 1230. In April, the trade balance showed a deficit of C$367 million after it had recorded a surplus of $152 million in March. This drop was as a result of a declining Canadian exports as US economy showed signs of weakness. On Wednesday, the report is expected to show a deficit of 500 billion.
The last report on this pair will be Thursday’s NHPI report. New Housing Price Index rose in April by 0.2 percent a smaller rise than March’s 0.3 percent rise. Year on year NHPI for April was at 2.5 percent while that for March was 2.6 percent. this time the market is expecting an increase of 0.3 percent.