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Easing U.S.-Iran tensions and mixed domestic data kept the Loonie under pressure last week. Can this week’s catalysts inspire stronger trends?

Lower tier releases

  • The last BOC quarterly outlook survey (Jan 13, 3:00 pm GMT) noted the improvement in business sentiment but also highlighted the regional differences in Q3 2019
  • ADP non-farm employment change (Jan 16, 1:30 pm GMT) has been volatile, printing at 30.9K in October after showing a 2.9K increase in September

Overall risk appetite

  • Loonie bulls and bears will likely continue to take cues from U.S.-Iran tensions and the updates’ impact on crude oil prices
  • Developments on the U.S.-China trade negotiations can also affect the Loonie’s intraweek trends
  • The U.S. CPI and retail sales; U.K.’s retail sales, and China’s quarterly GDP releases could also cause intraday trends for the Loonie

Technical snapshot

  • Williams %R considers CAD as “oversold” against JPY and GBP

  • CAD/CHF is trading below its long AND short-term SMAs on the daily time frame
  • CAD/JPY is trading above its long AND short-term SMAs on the daily time frame
  • EUR/CAD, USD/CAD, and AUD/CAD are all trading above their 5 SMAs but below their 20, 50, and 200 SMAs
  • GBP/CAD is trading above its 200 SMA but below its 50, 20, and 5 SMAs. Watch out for retracement or reversal opportunities

Missed last week’s price action? Read CAD’s price recap for January 6 – 10!