1Finance

Dollar/CAD slipped from the highs in a much-needed correction. The upcoming week’s highlights are the inflation and retail sales reports. What’s next?

1. Foreign Securities Purchases: Monday, 12:30. A lower number is likely now.
2. BOC Business Outlook Survey: Monday, 14:30. The quarterly report provides an insight on the economy, especially as it is released early in the quarter and comes from the BOC. After a very strong Q2, it will be interesting to see if the report points to a cooldown in the economy.
3. Manufacturing Sales: Wednesday, 12:30. The figure tends to move the loonie.
4. Inflation report: Friday, 12:30. Core CPI remained flat and disappointed last month. The BOC also releases additional core measures: Common CPI stood at 1.5% y/y, the Median at 1.7% and the Trimmed at 1.4%. If they all move in one direction, the loonie will feel it as well.
5. Retail sales: Friday, 12:30. If inflation does not provide big surprises, retail sales can take the lead in moving the C$.

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