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Canada is in for a data light week.

So, which catalysts can influence Loonie’s price action?

Here’s a shortlist:

Governor Macklem’s speech (June 22, 3:00 pm GMT)

  • Bank of Canada (BOC) Governor Tiff Macklem will talk monetary policy in a videoconference with audience questions
  • Macklem has recently hinted that BOC may not raise rates anytime soon as it’s “going to be a long way out” of the pandemic-related economic “hole.”

Crude oil updates

  • As one of the world’s largest oil exporters, Canada’s Loonie sometimes takes its cues from crude oil trends
  • News of OPEC members complying with their output cut deal and the U.S. printing lower oil inventories lifted the Black Crack higher last week

Overall risk appetite

  • As a high-yielding and commodity-related currency, the Loonie is sensitive to market risk sentiment
  • Rising coronavirus cases and talks of lockdown measures can affect the risk appetite for high-yielding bets
  • Vaccine and stimulus prospects can also influence risk sentiment
  • PMI reports due from the major economies will provide a clearer picture of the global economic recovery

Technical snapshot

  • Stochastic is highlighting the Loonie’s “overbought” conditions against the pound
  • CAD may be “oversold” against JPY and NZD on the daily time frame
CAD Forex Pairs Stochastic from MarketMilk
CAD Forex Pairs Stochastic from MarketMilk
  • GBP/CAD is bearish according to key short AND long-term SMAs
  • Both Kiwi and Aussie are on bullish trends against the Loonie
  • CAD/CHF and CAD/JPY are “bearish but weakening” on the daily time frame
  • Watch EUR/CAD for a bullish run and USD/CAD for a potential bearish swing
CAD Forex Pairs SMAs from MarketMilk
CAD Forex Pairs SMAs from MarketMilk
  • CAD saw the most volatility against AUD, GBP, JPY, and NZD 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 June 15 – 19!