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OPEC members are meeting this week! Will it help the Loonie? Or will their decisions drag the comdoll down across the board?

Here are potential market themes you should watch out for:

IVEY PMI (Apr 7, 2:00 pm GMT)

  • The closely watched IVEY PMI clocked in at 54.1 in February, lower than the 57.3 index reading in January
  • CAD didn’t react much to the report as it was printed in the same trading session as the actual labor data
  • Analysts see the index declining from 54.1 to 50.1 in March

Labor market data

  • Canada added a net 30,300 jobs in February, higher than the 10,500 net addition expected
  • Unemployment rate ticked higher from 5.5% to 5.6% for the month
  • The strong report did not help CAD, which was falling on coronavirus concerns at the time

OPEC meetings

  • Canada is one of the world’s biggest oil exporter, so oil price movements can affect CAD’s demand
  • Members of the Organization of the Petroleum Exporting Countries (OPEC) as well as other major oil producers like Russia and are meeting later this week to discuss potential production cuts
  • Keep your eyes on (1) the possibility of additional production cuts, (2) who will participate, and (3) how much production cuts members are willing to commit

Market risk sentiment

  • Updates on the coronavirus pandemic and its potential impact on the global economy will continue to affect CAD’s price action
  • Ministers from the euro zone will meet to discuss coordinated action that might help the region’s response to the pandemic
  • RBA’s policy announcement and the Fed’s meeting minutes can also shed light to the central banks’ plans for the foreseeable future

Technical snapshot

  • Despite last week’s gains, CAD is still down against USD, JPY, CHF, and EUR on a 30-day basis

  • Stochastic is flagging CAD’s “overbought” conditions against CHF and EUR on the daily time frame

  • CAD is “bullish” against AUD and NZD on the short and long-term SMAs
  • CAD is still “bearish” against GBP on the daily time frame
  • There may be chances of retracement or reversal against EUR, CHF, JPY, and USD

Missed last week’s price action? Read CAD’s price recap for March 30 – April 3!