Risk sentiment and rate cut fears did a number on the Loonie’s price action last week. Can the bulls find their mojo this week?
Here’s a short list of events that could affect the comdoll’s price action:
ADP non-farm employment change (Aug 15, 1:30 pm GMT)
Canada doesn’t have a lot of top-tier reports on tap, so ADP’s report will likely get more attention than the usual.
Recall that Canada just showed that it had lost a net of 24,000 jobs in July, which increased speculations that the Bank of Canada (BOC) will follow its comdoll counterparts and cut its own rates in the foreseeable future.
Will August’s numbers outperform its 30,400 reading in July? ADP’s report tends to be more volatile than the official results, so y’all might want to observe how the Loonie reacts to this week’s release before you place your trades.
OPEC output cut speculationsOne of the reasons why crude oil hadn’t seen a steeper slide last week is speculations that OPEC and friends are mulling on further production cuts that would balance the oil markets.
An official recently shared that Saudi Arabia plans to keep its crude oil exports below 7 million barrels per day in August and September “despite strong demand from customers.”
In addition to that, United Arab Emirates Energy Minister Suhail al-Mazrouei tweeted that:
The UAE will continue to support actions that help balance the oil market, and I am confident that our OPEC and non-OPEC partners will take a similar stance.
— سهيل المزروعي (@HESuhail) August 8, 2019
The OPEC and non-OPEC ministerial monitoring committee will next meet in Abu Dhabi on September 12. Until then, watch out for more officials making remarks about possibly keeping the group’s output cuts for longer or even stepping up their measures to curb supply!
Missed last week’s price action? Read CAD’s price recap for August 2 – 5!