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
- 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 saw the most volatility against AUD, GBP, JPY, and NZD in the last seven days
Missed last week’s price action? Read CAD’s price recap for June 15 – 19!
