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A pretty light week ahead for the Loonie, which could take cues from crude oil and market risk appetite this week.

Here are potential catalysts you need to know about!

Manufacturing sales (May 15, 12:30 pm GMT)

  • Sales improved from -0.7% to 0.5% in February despite COVID-19 concerns
  • CAD found support from Trump’s plans to reopen the economy
  • Traders see a much bigger drop (-5.8%!!) in March

Poloz’ speech (May 14, 3:15 pm GMT)

  • Bank of Canada (BOC) Governor Stephen Poloz will talk about the Financial System review printed at 2:30 pm GMT on the same day
  • Look out for clues on forward guidance, reopening plans, economic projections, and stimulus plans

Crude oil updates

  • Canada is a global oil producer so CAD is affected by crude oil headlines
  • The number of coronavirus cases, governments’ stimulus responses and the major economies’ reopening plans can affect oil price trends
  • Traders’ appetite for high-yielding bets like oil and Loonie can also affect the demand for CAD

Technical snapshot

  • Stochastic is pointing to CAD’s “overbought” conditions against EUR and GBP
CAD Forex Pairs Stochastic from MarketMilk
CAD Forex Pairs Stochastic from MarketMilk
  • The Loonie is on bearish trends against AUD and NZD on the daily time frame
  • Watch out for retracement or reversal opportunities against JPY, CHF, EUR, GBP, and USD
CAD Forex Pairs SMAs from MarketMilk
CAD Forex Pairs SMAs from MarketMilk
  • CAD has seen the most volatility against JPY, CHF, EUR, and GBP in the last seven days
CAD Forex Pairs Volatility from MarketMilk
CAD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read CAD’s price recap for May 4 – 8!