News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency:
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin here:
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here:
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here:
  • Bitcoin (BTC) started the day on the front foot on the Twitter news before the latest China crypto ban hammered the market lower. Get your weekly crypto forecast from @nickcawley1 here:
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here:
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here:
  • The US Dollar continues to push higher against ASEAN currencies after the FOMC rate decision. This leaves the USD/SGD, USD/THB, USD/PHP and USD/IDR outlook mostly tilted higher. Get your market update from @ddubrovskyFX here:
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:
  • The Japanese Yen remains in focus with strength potential on risk aversion themes to go along with weakness on themes around higher rates. Get your weekly $JPY technical forecast from @JStanleyFX here:
Canadian Dollar Outlook Remains Bearish Ahead of GDP Report

Canadian Dollar Outlook Remains Bearish Ahead of GDP Report

Renee Mu, Currency Analyst
Canadian_Dollar_Outlook_Remains_Bearish_Ahead_of_GDP_Report_body_Picture_1.png, Canadian Dollar Outlook Remains Bearish Ahead of GDP Report

Canadian Dollar Outlook Remains Bearish Ahead of GDP Report

Fundamental Forecast for Canadian Dollar: Bearish

The Canadian dollars weakened against its U.S. counterpart on the week, with USD/CAD hitting 7-month highs, as retail sales in December unexpectedly dropped by the most since 2010. In addition, Canada’s Consumer Price Index inflation for January came in lower-than-expected on both monthly and yearly basis. Going forward, the Loonie may continue to weaken over concerns on the weakness of Canadian real economy as well as the record low domestic interest rate.

As more bearish signs have changed outlook for Canada’s economic recovery and inflation remains low, the Bank of Canada is likely to shift to a neutral bias and look to keep interest rates at record-lows. Canadian employment fell in January for the first time in six months and manufacturing sales dropped as well. Economists in a survey polled by Bloomberg News have called for a 0.2 percent contraction in Canadian December Gross Domestic Product for the report due Friday. If the readings come in weaker than expected, the Loonie will likely be pushed to new lows.

In order to lower borrowing costs and further boost the economy, we may see policy makers hold benchmark interest rates through 2013. Unchanged rates would almost certainly hurt the Loonie as previous expectations called for higher yields.

With a slow growth in domestic side, Canada’s exports may weigh more on the recovery of economy. The amount in Canadian exports have not returned to pre-recession levels and thus a weaker Loonie will benefit exporters as their products will be more competitive in the global market. In order to maintain foreign demands for Canadian products, the Loonie may preserve its recent downward trend for a longer period.

Another driver to the Canadian dollar next week will be the testimony by Fed Chairman Bernanke on monetary policy report made to the Congress, as US is Canada’s largest trade partner. Although much of the Fed’s policy has been covered in the FOMC Minutes released this week, questions raised to Bernanke will be interesting. This will help investors gauge the likelihood of ending or increasing monetary stimulus in the near term. If the US economy recovers at a faster pace, Canada could also benefit from the strengthening of its biggest importer. -RM

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.