Partner Center Find a Broker

A surprisingly dovish BOC and weak oil prices dragged the Loonie lower last week. Let’s see if this week’s catalysts can change its course!

Here are potential catalysts you should pay attention to:

Trade balance (Nov. 5, 1:30 pm GMT)

  • Canada’s trade deficit narrowed down from 1.38B CAD to 0.96B CAD in August
  • Exports had risen by 1.8% while imports inched 1.0% higher
  • The strong exports numbers boosted the Loonie before a weak IVEY PMI report dragged it back down
  • Canada could print a 0.70B CAD trade deficit this week

Labor market numbers (Nov. 8, 1:30 pm GMT)

  • Unemployment rate fell from 5.7% to 5.5% in September, the lowest since June
  • The economy added a net of 53,700 jobs as 70,000 increase in full-time work eclipsed the 16,300 decrease in part-time jobs
  • Labour force participation rate slipped from 65.8% to 65.7%
  • The better-than-expected unemployment rate pushed CAD higher across the board
  • Analysts see the jobless rate remaining at 5.5% in October
  • The economy could add a net of 20,000 jobs for the month
  • Participation rate is expected to remain at 65.7%
  • The IVEY PMI, a leading indicator of jobs numbers, is expected to improve from 48.7 to 49.3 and will be printed on November 6, 3:00 pm GMT

Technical snapshot

  • Stochastic and Williams %R both consider NZD/CAD and AUD/CAD as OVERBOUGHT
  • CAD Oscillators from MarketMilk™
    CAD Oscillators from MarketMilk™
  • AUD/CAD and NZD/CAD are in the “bearish but weakening” zone in the long-term and “bullish” in short-term time frames
  • CAD Trend Profile from MarketMilk™
    CAD Trend Profile from MarketMilk™
  • Watch AUD/CAD and NZD/CAD to see if their short-term uptrends translate to longer-term reversals

Missed last week’s price action? Read CAD’s price recap for Oct. 28 – Nov. 1!