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Weak inflation data and falling oil prices kept pressure on the Loonie last week. Which catalysts would influence its price action this time?

Wholesale sales (Jul 22, 1:30 pm GMT)

There aren’t a lot of top-tier reports scheduled from Canada, so the wholesale sales report will likely get more attention than usual.

The report posted a 1.7% increase for the month of April, higher than the 1.4% growth seen in March and marked the fifth consecutive monthly increase.

The better-than-expected release boosted the Loonie against its major counterparts. Unfortunately, the move didn’t last long as traders went back to pricing in other market themes.

This week analysts expect the report to break its streak and only clock in a 0.8% gain for the month of May.

Keep in mind that there aren’t other top-tier releases scheduled at the time of the release. So, unless non-data themes dominate the markets, then we’ll likely see the report affect the Loonie’s price action for at least a couple of hours.

Countercurrency and oil price action

We know from last week’s price action that the Loonie also takes cues from catalysts from other major economies as well as oil price trends.

This week watch out for releases like the euro zone’s PMIs, the results of the U.K.’s Conservative leadership elections, ECB’s policy decision, and Uncle Sam’s advance GDP report.

Aside from their impact on the high-yielding Loonie, watch how these potential catalysts affect oil prices.

Word around is that crude oil prices popped higher during the Asian session after Iran seized a British oil tanker last Friday. Tensions in the Middle East could disrupt crude oil supply, so prolonged conflict just might pull the Loonie higher against some of its counterparts.

Missed last week’s price action? Read CAD’s price recap for July 15 – 19!