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Weak economic and oil prospects dragged the Loonie lower last week. Can this week’s catalysts turn things around for the comdoll?

Here are major events you should pay close attention to:

Retail sales (Arp 21, 12:30 pm GMT)

  • Retail trading rose by 0.4% in January, higher than December’s 0.2% uptick
  • Core retail sales dipped by 0.1% after a 0.7% gain in December
  • CAD fell despite the news, thanks to news of accelerating number of coronavirus cases
  • Analysts see retail sales gaining by 0.3% in February
  • Core retail sales could also hit a 0.3% growth

CPI numbers (Apr 22, 12:30 pm GMT)

  • Consumer price index (CPI) only gained by 2.2% from a year ago in February, down from January’s 2.4% increase
  • CAD rose against the comdolls but fell against the European and safe haven currencies
  • Market players expect a 0.4% dip in the monthly CPI and only a 1.3% growth in the annualized version

Crude oil price action

  • As Canada is a major oil exporter, the Loonie is vulnerable to oil price movements
  • Lockdowns across the world continue to limit global demand for oil
  • Keep an eye out for price action connected to the May futures contract, which could further drag on spot oil prices

Technical snapshot

  • Williams %R considers CAD as “oversold” against NZD and AUD

  • The Loonie is still mostly bearish across the board
  • Watch out for retracements against EUR on the daily time frame

  • CAD has been most volatile against NZD, JPY, USD, and AUD in the last seven days

Missed last week’s price action? Read CAD’s price recap for April 13 – 17!