Can the Loonie gain some of the pips it had lost last week? Or will the bears extend their party and drag the comdoll lower? Here are the possible catalysts:
Trade balance (Mar 27, 1:30 pm GMT)
Canada’s trade deficit widened from a downwardly revised 1.98B CAD to 4.59B CAD in December, which is much more than the 2.8B CAD figure that analysts were expecting.
Canada’s weak trade numbers were printed at the same time as Uncle Sam’s own numbers also showed weaknesses. Not surprisingly, the additional signs of trade tensions doing their number on economic growth weighed on the high-yielding Loonie.
This week, market players expect the trade deficit to chill to 2.30B CAD for the month of January.
A better-than-expected trade balance report could erase some of the Loonie’s losses. Weaker figures, on the other hand, would support last week’s rumors that the Bank of Canada (BOC) would likely need a rate cut in the foreseeable future.
Don’t even think of missing the release!
Monthly GDP (Mar 29, 1:30 pm GMT)
Canada’s QUARTERLY reading only came in at 0.1% in Q4 2018, which was way lower than Q3’s 0.5% uptick. Heck, it’s the lowest since Q2 2016!The triple combo of Canada’s weak GDP, Uncle Sam’s disappointing data, and oil dropping on demand concerns dragged the Loonie sharply lower during the trading session.
Monthly releases like the one scheduled this week don’t get as much attention as the quarterly releases but, given how traders were jittery over the prospect of a more dovish BOC this year, it’s possible that January’s growth numbers will get more attention than the usual.
Missed last week’s price action? Read CAD’s price recap for March 18 – 22!