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The Loonie danced to the tune of its counterparts last week.

Can the bulls and bears find direction from Canada’s data releases?

Take a look at the potential catalysts that might affect CAD’s prices!

Mid-tier data releases

  • New motor vehicle sales (Feb 15, 1:30 pm GMT) to weaken from 132K to 120K?
  • Manufacturing sales (Feb 15, 1:30 pm GMT) seen growing by 0.6% (from -0.6%)
  • Monthly inflation (Feb 17, 1:30 pm GMT) to show 0.2% uptick
  • Annual inflation expected to speed up from 0.7% to 0.8%
  • Annual core inflation could dip from 1.5% to 1.4%, which would ease pressure on the Bank of Canada (BOC) to tighten its easy policies anytime soon
  • ADP non-farm employment change (Feb 18, 1:30 pm GMT) estimated at 10K (from -28.8K)
  • Retail sales (Feb 19, 1:30 pm GMT) to drop by 2.6% (after 1.3% increase)
  • Core retail sales expected at -3.0% (from 2.1%)

Market risk appetite

  • Unless we see significant hits or misses in Canada’s CPI and retail sales data, CAD bulls and bears could take their cues from the Loonie’s major counterparts
  • News related to vaccinations, stimulus (both monetary and fiscal), and easing lockdown measures would boost appetite for high-yielding currencies like CAD
  • PMI reports from the U.S., Eurozone, U.K., Japan, and Australia can affect overall risk-taking in the markets

Technical snapshot

  • Stochastic considers the Loonie “overbought” against the dollar and the yen
  • The Loonie may be “overbought” against the pound and the Aussie on the daily time frame
CAD Forex Pairs Stochastic from MarketMilk
CAD Forex Pairs Stochastic from MarketMilk
  • Moving averages suggest that the Loonie is in short and long-term bullish trends against the safe-havens and the euro
  • SMAs also show CAD in short and long-term bearish trends against the pound and its fellow comdolls
CAD Forex Pairs SMAs from MarketMilk
CAD Forex Pairs SMAs from MarketMilk
  • CAD saw the most volatility against the safe-havens and the Kiwi in the last seven days
CAD Forex Pairs Volatility from MarketMilk
CAD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read CAD’s price recap for Feb. 8 – 12!