Key points
This article is a follow up to: Canadian dollar holds steady close to one-week high
The Canadian dollar saw a slight dip against the US dollar, with the USDCAD currency pair quoted at 1.38106. This movement comes as the markets anticipate the release of preliminary manufacturing and wholesale sales data for May from Canada.
Picture: CAD losing strength against USD in anticipation of key economic data releases, as observed on the VT Markets app.
Manufacturing sales data
In April, manufacturing sales rose by 1.1% to $70.8 billion, primarily driven by increases in the sales of transportation equipment, primary metals, and chemical products. This data is crucial as it measures the change in the overall value of sales at the manufacturing level, indicating the health and growth of the manufacturing sector.
If May’s preliminary data shows a similar or greater increase, it could signal continued strength in the Canadian manufacturing sector, potentially boosting the CAD. Conversely, weaker-than-expected data could weigh on the currency.
Wholesale sales data
Wholesale sales in April increased by 2.4%, reaching $83.3 billion, excluding petroleum products and oilseeds. This metric reflects changes in the total value of sales at the wholesale level, providing insight into economic activity and demand within the wholesale market.
Strong wholesale sales data for May could further support the the Canadian dollar by indicating robust economic activity and consumer demand.
📊 Despite a resilient Q2 GDP in the US, inflation data and Fed rate expectations dominate market sentiment. Investors look to a potential rate cut in September. #USEconomy #Inflation #FederalReserve
— Phidias Propfirm (@PhidiasPropfirm) July 26, 2024
What you should pay attention to
Given the current market conditions, short-term traders should keep a close eye on the upcoming data releases.
A higher-than-expected reading for manufacturing and wholesale sales data will likely bolster the strength of the Canadian dollar, while disappointing data could lead to further weakening.
Additionally, global economic factors, such as changes in oil prices and US economic policies, will also play a significant role in the movements of USDCAD.
Education
Company
FAQ
Promotion
Risk Warning: Trading CFDs carries a high level of risk and may not be suitable for all investors. Leverage in CFD trading can magnify gains and losses, potentially exceeding your original capital. It’s crucial to fully understand and acknowledge the associated risks before trading CFDs. Consider your financial situation, investment goals, and risk tolerance before making trading decisions. Past performance is not indicative of future results. Refer to our legal documents for a comprehensive understanding of CFD trading risks.
The information on this website is general and doesn’t account for your individual goals, financial situation, or needs. VT Markets cannot be held liable for the relevance, accuracy, timeliness, or completeness of any website information.
Our services and information on this website are not provided to residents of certain countries, including the United States, Singapore, Russia, and jurisdictions listed on the FATF and global sanctions lists. They are not intended for distribution or use in any location where such distribution or use would contravene local law or regulation.
VT Markets is a brand name with multiple entities authorised and registered in various jurisdictions.
· VT Global Pty Ltd is authorised and regulated by the Australian Securities & lnvestments Commission (ASIC) under licence number 516246.
· VT Global is not an issuer or market maker of derivatives and is only allowed to provide services to wholesale clients.
· VT Markets (Pty) Ltd is an authorised Financial Service Provider (FSP) registered and regulated by the Financial Sector Conduct Authority (FSCA) of South Africa under license number 50865.
· VT Markets Limited is an investment dealer authorised and regulated by the Mauritius Financial Services Commission (FSC) under license number GB23202269.
· VTMarkets Ltd, registered in the Republic of Cyprus with registration number HE436466 and registered address at Archbishop Makarios III, 160, Floor 1, 3026, Limassol, Cyprus.
Copyright © 2024 VT Markets.