Market Analysis: USDCAD focussing on Canadian GDP data on Friday – push to 1.3400?

After last Friday's events, this week the Loonie gets some close attention again due to the upcoming GDP data set, which will be published at 1:30pm London time. With the BoC (Bank of Canada) rate decision ahead next week on Wednesday, and the overall subdued to weak reaction from the CAD to the overall inflation data (2.4% against 2.2% expected), the picture within the USD/CAD currency pair presents itself as follows: every reading below the current expectation of 2% (YoY) could result in another attempt to attack the current yearly highs in the USD/CAD pair around 1.3380/3400 into the weekly close.

Source: Economic Events 30 November 2018 - Admiral Markets' Forex Calendar

With a break above 1.3400, the next target around 1.3800 (2017 yearly highs) would be activated, probably driven by an dovish rhetoric of the BoC next week, due to a mixed economic outlook, and thanks to the ongoing drop in oil prices. In general and from a technical perspective, a break higher above 1.3400 to new yearly highs remains an option as long as the USD/CAD pair trades above 1.3100/3130.

Source: Admiral Markets MT5 with MT5SE Add-on USDCAD 4-Hour chart (between 28 September 2018 to 29 November 2018). Accessed: 29 November 2018 at 11:00 PM GMT

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