The Canadian dollar has posted gains in the Tuesday session. Currently, USD/CAD is trading at 1.2881, up 0.30% on the day. On the release front, there are no Canadian indicators. In the US, CB Consumer Confidence is expected to rise to 131.2 points. On Wednesday, the US releases Final GDP.
Last week was positive for the Canadian dollar, which posted gains of 1.6 percent. The Canadian currency gained ground on Friday, after strong consumer data. CPI, ticked lower to 0.6% but beat the estimate of 0.4%. Retail Sales rebounded with a gain of 0.9%, after a sharp loss of 1.8% in the previous release. This reading matched the estimate. There was positive news in the US as well, as durable good reports beat their estimates. A stronger US economy means a larger demand for Canadian exports, which is good news for the Canadian dollar.
Concerns over a possible global trade war have eased this week, after China filed applications with the World Trade Organization regarding US tariffs on Chinese products. China has objected to the US claim that the tariffs were imposed on national security grounds. Rather, China says that the US simply applied trade restrictions in order to protect domestic steel producers. Last week, President Trump announced that the US would impose tariffs on up to $60 billion worth of Chinese imports, and China has threatened to retaliate. These moves sent the markets lower, as the specter of a downturn in the Chinese economy and the possibility of a global recession weighed on investor risk appetite.