Looks like the Canadian dollar was at the bottom of the forex heap for major currencies ast week.
Can Loonie bulls put some muscle in their hustle after last week’s defeat?
Check out the potential catalysts that might affect the comdoll’s prices!
Domestic economic reports
- Industrial PPI (June 20, 12:30 pm GMT) could ease from -2.3% to -0.6%, while the annualized reading is seen worsening from -6.0% to -6.5% in May
- Monthly GDP (June 30, 12:30 pm GMT) expected to drop by another 11.0% in April
- Trade deficit (July 2, 12:30 pm GMT) may narrow down from 3.25B to 2.8B CAD in May
- Markit’s manufacturing PMI (July 2, 1:30 pm GMT) could improve from 40.6 to 41.0 in June
Overall risk sentiment
- U.S. and global coronavirus cases and the prospect of re-imposing lockdown measures will continue to affect high-yielding bets like the Loonie
- Powell and Mnuchin’s testimonies will shape stimulus updates and the risk-friendly vibe that may result from them
- Top-tier reports like China’s PMIs and the U.S. NFP releases can also influence market risk appetite
- As one of the biggest oil producers in the world, Canada also has an interest in global crude oil prices. This means CAD’s price action may be influenced by commodity-related volatility
- Stochastic considers the Loonie “oversold” against the Aussie and the safe havens
- Long-term SMAs point to a clear bullish trend against the pound
- CAD remains bearish against its fellow comdolls and the European currencies
- Watch out for retracement or reversal opportunities against yen and the dollar