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A busy week translated to mixed performance for the Loonie.
Can bulls and bears agree on one direction this week?
Here are the potential catalysts that you need to watch out for!
Housing starts (June 8, 12:15 pm GMT)
- Housing activity in Canada was mixed in April
- Analysts see an additional 150,000 house permits approved in May
Crude oil prices
- Over the weekend OPEC+ extended its production cut deal through the end of July
- Oil price moves can affect the Loonie as Canada is a big oil exporter
Countercurrency flows
- Pandemic-related updates will continue to affect the demand for high-yielding comdolls like the Loonie
- U.S.-China tensions can also influence risk-taking if we see inflammatory rhetoric from either side
- The Fed’s statement on Wednesday can cause mid-week retracements if Powell hints at unexpected policy responses
Technical snapshot
- RSI considers CAD “overbought” against the yen and the dollar
- CAD may be “oversold” against the Aussie and Kiwi on the daily time frame
- The Loonie is still decidedly bullish against JPY, GBP, and USD
- CAD is on short and long-term bearish trends against AUD and NZD
- We could see retracements or reversals on CAD/CHF and EUR/CAD
- CAD was most volatile against JPY, AUD, NZD, and CHF in the last seven days
Missed last week’s price action? Read CAD’s price recap for June 1 – 5!