Domestic data played a big part in dragging the Loonie lower across the board last week. Which events can move the comdoll on this data-light trading week?
Manufacturing sales (Mar 15, 12:30 pm GMT)
Canada won’t see any action until the end of the week when the manufacturing sales report is due.
Last month’s release told us that manufacturing sales had dropped by 1.3% in December, lower than the expected 0.2% increase, thanks to lower sales of petroleum and coal products.
This time around, market players estimate a 0.5% increase for the report. If you recall, the Loonie fell across the board when last month’s disappointing numbers were printed. And, considering that Canada won’t have a lot of domestic data scheduled for release, it’s possible that Loonie traders will once again take cues from this week’s report.
Global risk sentiment
With not a lot going on in Canada economic data-wise, traders could look at other major economies for cues on how to trade the Loonie.
Top-tier reports from the U.S. (retail sales, CPI), U.K. (GDP, annual budget), and the EU (industrial production, German trade balance) could affect sentiment for the comdoll. China’s data dump scheduled on Thursday could also rock the Loonie’s prices, especially if investors play the trade demand angle.
And then there’s the small issue of Britain’s policymakers voting on Brexit options this week. If we see more uncertainty, whether it’s regarding Britain’s exit or global trade conditions, then the Loonie could take more hits across the board.
But if a hard Brexit is taken off the table, or if this week’s top-tier reports print to the upside, then we could see the high-yielding Canadian dollar recoup some of its losses from last week.
Missed last week’s price action? Read CAD’s price recap for March 4 – 8!