The Loonie’s price action was a mixed bag of beans last week. Can this week’s catalysts inspire one-directional moves from the comdoll?
Let’s take a look at the potential catalysts:
CPI report (Jul 17, 1:30 pm GMT)
Consumer prices in Canada jumped to its fastest rate in seven months in May, clocking in at an annual rate of 2.4% when analysts only predicted a 2.1% jump.
Details tell us that price increases mostly came from higher food and transportation prices. On a monthly basis, prices had risen by 0.4%, same as in April and still faster than the 0.2% uptick seen by market players.
This week traders expect prices to only rise by 1.9% from a year ago in June. Heck, the monthly reading is even expected to dip by 0.3% after last month’s 0.4% increase!
Take note that details such as the core, “common,” “trimmed,” and “median” CPI will also be printed at the same time. The Bank of Canada (BOC) considers them during policymaking, so y’all should pay attention, too!
In last month’s release the Loonie’s price action was tempered by Greenback-related biases. Uncle Sam won’t be printing top-tier reports this time, so we’ll more likely see data-related price reaction for the Loonie.
Retail sales (Jul 19, 1:30 pm GMT)
Retail trading improved by 0.1% in April, much slower than the upwardly revised 1.3% gain in March and the expected 0.2% increase.
Sales at miscellaneous stores showed the highest increases, while beer, wine and liquor gasoline, new car dealers, and specialty food stores also popped up.
Meanwhile, sales of garden equipment and supplies dealers, clothing accessories, and supermarkets and other groceries took hits.
This time around traders see retail sales growing by 0.3%. Ditto for the core reading, which also saw a 0.1% increase back in April.
Retail sales numbers will be printed near the end of the week, so it’s primo opportunity for Loonie players to take intraweek profits in case May’s numbers come out better or worse than expected.
Missed last week’s price action? Read CAD’s price recap for July 8 – 12!