Loonie bulls made pips rain last week despite lower oil prices. Can they extend their gains this week?
Housing starts and building permits
- Housing starts (Feb 10, 1:15 pm GMT) could improve from 197.3K to 202.5K in January
- Building permits (Feb 10, 1:30 pm GMT) is seen at 1.0% (from -2.4%) in December
Poloz’ speech (Feb 13, 12:15 am GMT)
- Bank of Canada (BOC) Governor Poloz will participate in a panel discussion in Melbourne
- In BOC’s last statement, Poloz opened the door to a rate cut if economic slowdown persists
- Poloz ends his term in June
Market risk sentiment
- Oil production cut recommendations will likely affect crude oil (and maybe CAD?) price action over the next couple of days
- Coronavirus concerns can also continue to affect CAD’s price action, though not as sharply as in NZD and AUD
- Powell and Lagarde’s speeches throughout the week can also influence risk-taking
- Stochastic flags CAD as “overbought” against NZD and “oversold” against USD
- CAD/JPY and GBP/CAD are “bullish but weakening” with the long-term SMAs and “bearish” against shorter-term SMAs on the daily. Watch out for retracement or reversal opportunities
Missed last week’s price action? Read CAD’s price recap for February 3 – 7!