The USD/CAD pair is struggling to take advantage of the upbeat market sentiment on Tuesday as the latest information from Canada remind investors of the holdup within the Canadian economy in the first quarter of 2019. As of writing, the pair was up 0.04% on the day at 1.3374.
Statistics canada today reported that manufacturing sales in february declined by 0.2% on a monthly basis in february to disappoint of the market expectation for a no-change, confirming the dismal tone in the Bank of Canada’s Business Outlook Survey that was made known yesterday. “The Business Outlook Survey indicator decreased from a powerfully positive level in the winter survey and is currently slightly negative, suggesting a softening in business sentiment,” the BoC aforesaid.
On the other hand, the Fed declared that industrial production within the U.S. declined by 0.1% in March to miss the analysts’ estimate of +0.2% and made it tough for the dollar to gather strength against its rivals. With the us dollar Index troubled to form a decisive break higher than the ninety seven mark, the pair’s face stays restricted for currently.
On wednesday, inflation data from Canada are the next important catalyst on the CAD’s market valuation. “The surge in fuel prices throughout the month could have led the headline price index to rise 0.7% m/m (not seasonally adjusted). this might enable the annual rate of inflation to rise 4 ticks to 1.9%. The annual rate of CPI-common, meanwhile, may have stayed put at 1.8%,” NBF analysts said previewing the data.
