Canada’s data calendar is relatively light this week. So, which catalysts can move the Loonie this week?
Here’s a short list:
Housing starts and building permits (Sept 10, U.S. session)
In its last statement, the Bank of Canada (BOC) noted that “housing activity has regained strength,” as resales and housing starts “catch up to underlying demand.”
This week analysts see housing starts cool down from +222.0K to +204.5K for the month of August. Building permits, on the other hand, is expected to print a 1.5% growth in July after falling by 3.7% in June.
We know that a strong housing market is one of the reasons why BOC can afford to wait before cutting its rates like the rest of its peers. If this week’s housing-related reports significantly miss, however, then we could see the Loonie lose some of its gains from the previous week.
OPEC meetings and market sentiment
The Organization of Petroleum Exporting Countries (OPEC) and its friends are conducting a two-day meeting this week to talk about compliance of their output cut deal and maybe think about extending the oil-bullish agreement.
In case you missed it, Saudi’s King Salman recently dismissed Khalid Al-Falih as the country’s Energy Minister and replaced him with one of his sons, Prince Abdulaziz bin Salman.
Prince Abdulaziz has a rep of favoring production cuts, so it’s no surprise that markets are speculating that one of the world’s top oil producers might be on board to extend or even deepen Saudi’s production cut goals.
Any one of these calendar events can affect the high-yielding Loonie’s prices, so stick around if you don’t want to miss any market volatility!
Missed last week’s price action? Read CAD’s price recap for September 2 – 6!