No major data from Canada this week! Does this mean that the Loonie will dance to the tune of market risk sentiment again?
Here’s a (short) list of this week’s potential catalysts:
Manufacturing sales (Feb 14, 1:30 pm GMT)
Lower petroleum and coal product weighed on Canada’s manufacturing sales, dragging the report lower by 1.4% from October to November last year.
At the heels of similar reports seen in wholesale trade and trade balance data, the release supports speculations that Canada’s economy is “moderating.”
Analysts are a bit more optimistic for December, forecasting a 0.2% after a 1.4% declined in November.
More oil-related updates
As mentioned in last week’s price action review, crude oil prices took hits when market geeks stopped worrying over the impact of the U.S.’ sanctions on Venezuela and started focusing on rising U.S. supply data.
It also didn’t help that economic themes such as Brexit and U.S.-China trade negotiations kept risk-takers skittish for most of the week, and that mid-tier reports from major economies kept fears of global economic slowdown alive in the markets.
Over the next couple of days, look out for reports that might influence the prices of high-yielding assets like crude oil and the Loonie. With Canada barely churning out domestic data, you can bet that Loonie traders will look to other catalysts for direction!
Missed last week’s price action? Read CAD’s price recap for February 4 – 8!