Top-tier economic reports and oil price action weighed on the Loonie last week. Which events can affect the currency this week?
BOC’s policy statement (Mar 6, 3:00 pm GMT)
In its last meeting, the Bank of Canada (BOC) joined the bandwagon by hinting that they could afford to be more patient before they raise their interest rates further.
Governor Poloz helped stem the losses, however, when he also hinted that they could still raise their rates despite lower oil prices.
Analysts don’t expect any policy changes from the central bank this week. But that doesn’t mean that the event will be a non-mover! Keep close tabs on the event in case we get any hints on the BOC’s policy biases in the foreseeable future.
Employment numbers (Mar 8, 1:30 pm GMT)
Canada added a net of 66,800 jobs in January, which is much more than the 8,000 jobs that analysts had expected. Unemployment rate rose from 5.6% to 5.8%, though, thanks in part to the labor force participation rate inching up from 65.4% to 65.6% during the month.
Not surprisingly, the Loonie shot up across the board when traders saw the better-than-expected numbers.
This week market geeks are expecting a net addition of 11,200 jobs in February, while the unemployment rate is expected to edge lower from 5.8% to 5.7%.
Take note that that the closely-watched U.S. NFP report will come out at the same time as Canada’s jobs data, so it’s possible that traders’ reaction to the report will be relatively subdued.
Missed last week’s price action? Read CAD’s price recap for Feb. 25 – Mar. 1!