Canada is printing its Q1 GDP this week!
What are analysts expecting and what other themes can affect the Loonie’s price action this week?
Poloz’ speeches
- Bank of Canada (BoC) Governor Poloz will deliver a Hanson Memorial lecture via satellite today at 5:30 pm GMT
- The BOC head honcho will also testify with Senior Deputy Governor Carolyn Wilkins, before the before Senate Committee on National Finance on May 26 at 9:00 pm GMT
GDP release (May 29, 12:30 pm GMT)
- Quarterly growth dipped from 0.3% to 0.1% in Q4 2019
- CAD dropped against the yen but made gains against its other counterparts
- March’s GDP could see a 9.0% from a 0.0% reading in February
- Annualized GDP is seen at -10.0% after printing at 0.3% in Q4 2019
Crude oil prices
- As an exporter of crude oil, Canada’s economy can take hits from lower oil demand
- Easing of lockdown measures across the world can help push commodity-related currencies higher
- Tensions between the U.S. and China can affect overall risk appetite, however
- Updates on stimulus measures and global growth can also make or break CAD’s intraweek trends
Technical snapshot
- CAD could see upside pressure against GBP as Stochastic signals its “oversold” conditions
- CAD is currently “overbought” against its fellow comdolls on the daily time frame
- CAD is generally on bearish trends against AUD and NZD
- CAD could go full-on bearish on USD if it trades below the 50 SMA
- CAD saw the most volatility against JPY, NZD, CHF, and USD in the last seven days
Missed last week’s price action? Read CAD’s price recap for May 18 – 22!
