CAD Fundamental Analysis
CAD's current outlook score of 52 shows that the long-term outlook is neutral; traders with a long-term trading timeline will probably be very sensitive to the day-to-day news, thus the long-term trend will probably change based on breaking news.
The latest 10 economic indicators released out of Canada have added 2 to the total Fundamental Outlook score of CAD. This represents a low rate of growth in recent months. More specifically, the most recent economic release with the greatest impact for CAD was the Canada GDP m/m, which took place on March 31, 2017 at 12:30pm GMT. The Deviation for the Canada GDP m/m is 0.3% and the Forecast at the time was 0.3%. The actual figure came in at 0.6%, which was a positive surprise for CAD.
Although the current score for CAD is 52, please understand that this merely reflects the long-term view based on official economic data out of Canada. This outlook score does not account for market sentiment, namely risk appetite or risk aversion, order flows, or any breaking news that has the potential of changing the short-term market trend.
Fundamental Outlook Score is meant to be used as a direction confirmation tool, the idea behind this indicator is the sum of the effects of market sentiments into an easy to understand format. The proper use of this tool is to pre-qualify your trade. In the case of CAD, which has a neutral score, your bias would be to stay away from it for the time being until a clear trend emerges. This DOES NOT MEAN you should trade in the direction of the score blindly, but use it to filter out other trading signals that may tell you to go in the opposite direction... I believe ultimately the market will follow the fundamentals, and that's the key to Fundamental Outlook Score. Click here for more information and detailed explanation on Fundamental Forex Outlook.
Recent Economic Indicators And Impact Score For Canada
Canada Core CPI... ▼
Core CPI - CPI, Consumer Price Index, is a statistical estimate of the movement of the prices of goods and services bought for consumption purposes by households. Its computation uses price data collected for a sample of goods and services from a sample of sales outlets in a sample of locations for a sample of times and estimates of the shares of the different expenditures in the total covered by the index which are usually based upon expenditure data obtained for sampled periods from a sample of households (Wikipedia). It is also known as the "True Cost of Living". Our focus is on the Core CPI or CPI ex Energy and Food components, which provides a better picture of inflation without the seasonal factor.
Canada Core Retail Sales... ▼
Core Retail Sales - Our focus is on the Core Retail Sales release and not the headline Retail Sales release; Retail Sales releases from Canada is a month on month release, and basically it's a measurement of the activities at the retail level of Canada, and the Core release is the same Retail Sales but excluding most volatile components, Automotive Components, which makes up about 25% and it varies seasonly. A better release generally means more consumer spending, which leads to better economy, thus better for its currency. And the CORE reading provides a far more accurate look of the actual economy.
Canada Employment Change... ▼
Employment Change - Measures the change in number of employed people during the previous month. A rising trend has a positive effect on the nation's currency. Job creation is an important indicator of economic health because consumer spending, which is highly correlated with labor conditions, makes up a large portion of GDP. This report is the first of the month that relates to labor conditions, making it susceptible to big surprises.