Yesterday saw a mixed trading session for both the USD and CAD. While both recorded gains against the British pound throughout the day, the yen was able to develop serious bullish momentum in overnight trading, and took in well over 100 pips profit on each of the North American currencies. Today, traders will be paying close attention to both Canadian and US trade balance figures, as they are likely to determine the short term trends for both the loonie and greenback.
Here is a roundup of the day’s main news events:
12:30 GMT- Canadian Trade Balance
Analysts are forecasting the Canadian Trade Balance figure to come in at around 0.6B. If true, it would represent a stark increase over last month’s figure of 0.1B. The CAD could see a jump in afternoon and evening trading today as a result of this indicator, in particular against its main currency rivals the euro and US dollar.
12:30 GMT- US Trade Balance
The US Trade Balance figure is forecasted to come in slightly better than last month’s result. Analysts are calling for a number around -44.1B, as opposed to March’s figure of -46.3B.
While the prediction does represent an improvement, it is unlikely to help the dollar as it still shows the US importing significantly more than it exports. Unless the figure comes in well above expectations, the dollar is likely to see a drop following the release of this report.
