With UK and US markets closed today liquidity may be on the light side. However, the economic calendar will not be taking a break as monthly Canadian GDP numbers will be released later today.
CAD – GDP m/m – 12:30 GMT
Expectations: 0.2%. Previous -0.2%.
Canadian GDP for the month of April is forecasted to grow following a disappointing month of February which had economic growth slipping into the red. Expectations are low and any decent growth numbers would be a positive for the Loonie. Initial support for the USD/CAD is found at 0.9740 followed by the low on March 20th at 0.9640. To the upside the recent rally has been capped at 0.9815. A breach here opens the door for gains towards 0.9970, a level where the mid-March high coincides with the 200-day moving average.
JPY – Preliminary Industrial Production m/m – 23:50 GMT
Expectations: 2.5%. Previous: -15.5%.
A fall in industrial output was expected after the earthquake and tsunami and is reflected in April numbers which declined by 15.5%. A 2.5% gain may be expecting too much from a feeble Japanese economy and could induce further declines in the USD/JPY. Initial support comes in at 80.35 followed by the May low at 79.50. A breach here would expose the pre-intervention low at 76.10.
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