The Canadian monthly GDP is announced on Wednesday at 15:30 MT time.
Canadian dollar goes down
On Tuesday, the Canadian dollar inched down versus its American rival due to the fact that an uncertain outlook for global trade compensated the lift from the highest crude prices for three months.
Another round of negotiations between China and America to tackle their trade conflict will be held in Washington on Tuesday.
Besides this, a confidential US Commerce Department report sent over the weekend to American leader was anticipated to clear the way for him to threaten levies of up to 25% on imported cars as well as car parts by simply labeling the imports as a national security threat.
By the way, Canada would be generally spared from car levies under the fresh US-Canada-Mexico Agreement on trade.
However, Canada is facing an account deficit now and it’s a key commodity producer, including crude, therefore its economy could be affected if the global flow of capital or trade speeds down.
American crude futures went up to their highest value since November 20, 2018, heading north by 0.40% being worth $55.81 a barrel, backed by lower supplies.
As a matter of fact, the Canadian dollar inched down by 0.2% concluding the trading session at 1.3271 versus the evergreen buck.
On Monday, the Canadian dollar was nearly intact, when Canada's stock as well as bond markets were unavailable due to the Family Day holiday. The previous week, the Canadian dollar went up by 0.3%.
Last Friday data from the US Commodity Futures Trading Commission as well as Reuters calculations revealed that traders reduced their bearish bets on Canada’s major currency.
Net short positions had inched down to 56,096 contracts as of January 22 from 59,524 in the previous week.
USD’s rally takes a pause, while riskier assets are modestly rising.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.