The Canadian dollar is riding a wave of commodity price rebounds and short-covering as it gains for the fourth consecutive session. Only the kiwi dollar has performed better over the past week.
Many countries have already released early Q1 GDP estimates but Canada is just getting around to report February data. Because it is so laggy, Canadian growth numbers typically are not CAD movers. Growth of 0.2% is expected for the month.
With USDCAD trading at 1.0110, the April low of 1.0084 looms and the 100-day moving average is also nearby.
The Canadian dollar has been highly correlated with the S&P 500 over the past month, at a 0.774 daily correlation. Look for a breakout in the stock index to confirm a break of the key levels in USDCAD.
