Can the Loonie see one-directional moves even without top-tier reports from Canada? Here are catalysts you should watch out for!
Housing starts and building permits (June 13, 1:30 pm GMT)
On Thursday Canada is slated to print the number of new residential buildings in May and new building permits issued in April.
Analysts expect to see 220,000 (from 235,000) new housing permits and a 0.9% increase (from 2.1%) in building permits issued.
These reports don’t usually cause sustained movements for the Loonie, but Bank of Canada (BOC) officials did say that “housing market indicators point to a more stable national market” when it made its decision to maintain its rates at 1.75% in May.
If the reports come in much weaker or stronger than analysts had expected, then we might see spikes among Loonie pairs around the time of the releases. Make sure you’re around to trade possible volatility spikes!
A light data calendar for Canada means that traders might use the oil-related Loonie to trade oil-related news.
In case you missed it, the Black Crack gained some ground earlier today and late last week after Saudi Arabia – OPEC’s biggest oil producer – hinted that the group is close to agreeing on extending its pact to cut oil production beyond the June deadline.
It also didn’t hurt that the U.S. and Mexico avoided more trade tensions when they reached a migration deal that put off the U.S.’ planned tariff increases on ALL Mexican goods.
This week pay close attention to more hints of a production deal extension by OPEC and its friends. Ditto for weekly oil inventories and rig count reports, which could inspire intraweek trends for the Loonie.
And there are more general market themes, such as potential easing by the Fed and biases from central banks like the ECB and SNB. Remember that Draghi has a speech scheduled this week while the SNB is set to publish its monetary policy update.
If major central banks lean towards more easing, then investors might feel better about battling global trade and slowdown concerns. But if central banks become TOO dovish, then some traders could get spooked and take their bets off of bets such as crude oil or the high-yielding Loonie.
Missed last week’s price action? Read CAD’s price recap for June 3 – 7!