Like the rest of the comdolls, the Loonie only gained ground in the later half of last week. Can this week’s catalysts push it higher?
Monthly GDP (Apr 30, 1:30 pm GMT)
A monthly GDP report printed in late March showed the economy growing by 0.3% in January when analysts had only expected a 0.1% uptick.
The much better than expected figure weakened speculations of a Bank of Canada (BOC) rate cut and pushed the Loonie higher across the board.
This week market geeks are back to expecting a 0.1% growth for the month of February, while the annualized figure is estimated at 1.4% against last month’s 1.6% reading.
Recall that the BOC recently went basic and jumped off the hawkish bandwagon. If this month’s release prints much weaker than many are expecting, then we might see more weakness for the Loonie.
Poloz’ speech (Apr 30, 4:00 pm GMT)
The BOC Governor, along with Senior Deputy Governor Carolyn Wilkins, will testify before the Standing Committee on Finance in Ottawa.
Just last week Poloz shared the central bank’s concerns over housing and said that policy needs to be accommodative even as they expect the economy’s slowdown to be temporary.
Will we get more policy hints from the BOC head honchos this week? Keep your eyes glued to the tube for any useful nuggets!
Reports from other major economies
Canada isn’t printing a lot of top-tier reports this week, which opens the Loonie to countercurrency price action.
First on the list are the PMI reports from all over the world. While Canada is scheduled to print the RBC manufacturing PMI on Wednesday during the U.S. session, it’s likely that traders will pay more attention to the releases of China, the U.K., euro zone, and the U.S. over the next few days.
Central bankers will also take center stage. The Fed is scheduled on Wednesday while the Bank of England (BOE) will make waves on Thursday’s London session.
No one is expecting policy changes from the central banks, but that doesn’t mean you shouldn’t stay tuned during the events!
Missed last week’s price action? Read CAD’s price recap for April 22 – 26!