Forex Today: CAD spikes in sync with Oil, a quiet docket ahead
|Asian week opening was a calmer one, despite solid NZ retail sales print and mixed Chinese data dump, as most majors traded in tight ranges amid a broad based USD consolidation after Friday’s downbeat US data-led sell-off. However, during mid-Asian trades oil prices and the Canadian dollar witnessed a sharp upward rally, following reports of Russia and Saudi Arabia favoring an OPEC output cut deal extension until March 2018. Meanwhile, Kiwi also held onto strong gains backed by above expectation NZ retail sales data.
Later today, amid a quiet economic calendar, focus will remain on the USD dynamics and Oil price-action, as investors gear up for an action-packed week ahead, with the UK CPI and S industrial production on tap.
Main topics in Asia
New Zealand Retail Sales (QoQ) came in at 1.5%, above expectations (0.9%) in 1Q
China data dump: Retail sales upbeat, industrial production disappoints
China’s retail sales YoY, came in in +10.7% vs 10.6% exp and 10.9% last, with industrial output YoY at 6.5% and 7.1% exp and 7.6% last.
N. Korea’s large scale heavy nuclear warhead landed in the sea near Russia on Sunday
Reuters out with detailed information on Sunday’s another ballistic missile test conducted by North Korea.
Russia, Saudi Arabia in favour of extending output cut deal to March 2018
As per the Bloomberg report, Russia and Saudi Arabia are in favour of extending the output cut deal to March 2018.
USD/CAD dumped to 1.3670 as Oil jumps +1.5% in Asia
The Canadian dollar rallied hard after latest headlines hit the wires on the OPEC output cut deal extension, knocking-off USD/CAD to daily lows of 1.3669.
Key Focus ahead
GBP/USD Forecast: any further up-move might now be capped at 1.2950 level
The pair built on Friday’s recovery move and has now moved back above the 1.2900 handle as focus shifts to this week’s important macroeconomic releases from the UK, including inflation figures and monthly employment report.
The week ahead: eyes on US IP (Tuesday) and other key global economic events
The week ahead in the US is holding a number of second-tier events, while greater risks come elsewhere from Euroland CPI, UK CPI, retail sales and labour force data, the RBA's minutes and Aussie unemployment data.
Disappointing data clouds dollar's near-term outlook - BBH
Analysts at Brown Brothers Harriman explained that softer than expected April US retail sales and consumer prices saw the dollar pare its gains ahead of the weekend.
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