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No major news from Canada this week, which means the Loonie’s price action will take its cues from risk sentiment again.

Which catalysts should you watch out for?

I’ve got a list for ya!

Lower-tier economic data

  • Manufacturing sales (June 15, 12:30 pm GMT) could have worsened (-9.2% to -18.7% in April)
  • Monthly CPI (June 17, 12:30 pm GMT) could improve from -0.7% to 0.7% though BOC is expected to look beyond consumer price increases for the time being
  • Retail sales (June 19, 12:30 pm GMT) seen at -14.0% while the core figure could print at -7.3% in April

Oil price movements

  • Canada is one of the world’s biggest crude oil exporters so the Loonie tends to directly correlate to oil price action
  • The Black Crack broke its six-week winning streak as traders worried that the reduction in global output is slowing down at a time when the recovery of demand is threatened by rising COVID-19 cases

Market risk sentiment

  • Optimism over a global economic recovery and concerns over a second wave of viral infections will continue to influence CAD’s intraweek trends
  • Policy decisions by the BOJ, SNB, and BOE, as well as Powell’s speeches in the next few days, can support or curb the demand for high-yielding comdolls like the Loonie
  • Signs of increasing tensions between the U.S. and China could also reduce risk-taking in the markets

Technical snapshot

  • Stochastic is flagging the Loonie’s “oversold” conditions against the pound and Kiwi
CAD Forex Pairs Stochastic from MarketMilk
CAD Forex Pairs Stochastic from MarketMilk
  • Daily EMAs are confirming CAD’s short and long-term bearish trends against NZD, EUR, and CHF
  • CAD’s downtrends against USD and JPY are seeing weaknesses around the 50 EMA
  • The Loonie is still on a bullish trend against the pound
CAD Forex Pairs EMAs from MarketMilk
CAD Forex Pairs EMAs from MarketMilk
CAD Forex Pairs Volatility from MarketMilk
CAD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read CAD’s price recap for June 8 – 12!