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Countercurrency flows gave the Loonie some wins last week. Which catalysts can influence the comdoll in the next few days?
CPI (Mar 18, 12:30 pm GMT)
- Consumer prices rose by 2.4% from a year ago in January (2.3% expected)
- The data, together with higher oil prices, boosted CAD against USD when all other comdolls were weak
- Analysts see a 2.1% annualized uptick in February
- Monthly CPI could increase from 0.3% to 0.4%
Retail sales (Mar 20, 12:30 pm GMT)
- Retail sales was unchanged in December after a 1.1% gain in November (0.1% expected)
- Retail sales is up by 1.6% in the whole of 2019, the smallest rise since 2009
- CAD scored gains against USD and AUD but lost against its other major counterparts
- Market players expect a 0.4% increase in headline retail sales
- Core retail sales could slow down from 0.5% to 0.2% in January
Overall risk appetite
- COVID-19 updates will continue to impact CAD’s intraweek trends
- Crude oil prices, which is sensitive to global authority responses, can also affect the Loonie’s price movements
- Scheduled and unscheduled monetary and fiscal policy announcements from major economies can cause intraday volatility among CAD pairs
Technical snapshot
- Stochastic considers CAD as “overbought” against AUD and “oversold” against CHF and USD
- CAD seems to be holding up against AUD, NZD, and GBP but is weak against its other major counterparts
- GBP/CAD is “bullish but weakening” on the longer-term SMAs and “bearish” on the short-term. Watch out for retracement or reversal opportunities on the daily time frame
Missed last week’s price action? Read CAD’s price recap for March 9 – 13!