Data for USA and Canada
USA:
- Core price index for personal consumption expenditures (m/m) (Apr), fact 0.2%, forecast 0.2%.
- Core price index for personal consumption expenditures (y/y) (Apr), fact 1.6%, forecast 1.6%.
- Perosnal spending (m/m) (Apr), fact 0.3%, forecast 0.2%.
Canada:
- GDP (m/m) (Mar), fact 0.5%, forecast 0.4%.
- GDP (q/q) (Q1), fact 0.1%, forecast 0.1%.
- GDP annualized (q/q) (Q1), a fact of 0.4%, the forecast of 0.7%.
- Commodity Price Index (RMPI) (m/m) (April), fact 5.6%, fact 2.3%.
Data for the United States coincided with the forecast to a greater extent. Separately, it is necessary to highlight the perosnal spending in the United States, which have intensified in April and can serve as a positive signal for inflation rates. But, due to discreet data on personal consumption expenditure indices and risk retention, published US statistics did not have a significant impact.
Fig. 1. Personal spending in the USA
On the contrary, data for Canada surpassed market expectations, showing growth in the Canadian economy to an annual maximum. In addition, it is worth noting the rise in prices for raw materials, which is a positive signal to the strengthening of the index of consumer prices in Canada.
Fig. 2. GDP (m m) of Canada
The published news block has put more pressure on the US dollar than it has supported the Canadian currency. This was due to restrained US data. The dynamics of the USD/CAD pair, despite the statistics, remains in the upward channel, receiving support from the negative dynamics of oil and increasing risks of trade appropriation. This pair is limited to support levels: 1.3520 and 1.3500, resistance: 1.3580 and 1.3400.
Fig. 3. USD/CAD chart. Current price – 1.3540
Read also: “Money Management on FOREX – URGENT/IMPORTANT”
Hanzenko Anton
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