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The Loonie danced to the tune of oil price action last week. Will the same themes dominate its price action this week?
Before we get to the potential market movers, make sure you’ve read what happened to the Loonie last week!
Done reviewing? Let’s get to the potential catalysts you should know about!
Monthly GDP update (Apr 30, 12:30 pm GMT)
- Inclement weather dragged GDP to only a 0.1% growth in January, lower than the 0.3% uptick in December
- Market players expect growth to stagnate in February
Oil price updates
- Negative crude oil prices and rising tensions with Iran influenced CAD’s price action last week
- Pay attention to rising U.S.-Iran conflict, which may involve shooting Iranian speedboats in international waters or the U.S. returning to the 2015 nuclear deal to prevent Iran receiving arms exports
- Countries restarting their economies can also improve demand for oil (and the Loonie)
Market risk appetite
- Monetary policy decisions from the BOJ, the Fed, and ECB can affect risk-taking in the markets
- Other top-tier reports like the U.S., China, and the euro zone’s PMIs and, and U.S. GDP can also influence appetite for the high-yielding comdolls
- Coronavirus-related updates and their impact on the global leaders’ plans to restart their economies can also factor in this week’s price action
Technical snapshot
- Stochastic and Williams %R both point to CAD being “oversold” against AUD on the daily time frame
- CAD is still on bearish trends for the most part, though it’s seeing green shoots against AUD and NZD
- CAD has been most volatile against AUD, NZD, and USD in the last seven days
