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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 Forex Pairs Stochastic from MarketMilk
CAD Forex Pairs Stochastic from MarketMilk
  • 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 Forex Pairs SMAs from MarketMilk
CAD Forex Pairs SMAs from MarketMilk
  • CAD saw the most volatility against JPY, NZD, CHF, and USD 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 18 – 22!