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Last week’s price action was a mixed bag for the Loonie, as it gained on the safe havens, lost to the other comdolls, and seesawed against the European currencies.

Can we see more consistent trends this week?

Check out the themes that may affect CAD’s prices:

Labor market numbers (July 10, 12:30 pm GMT)

  • Canada added a net of 290,000 jobs in May after almost 2 million workers had lost work in April
  • Unemployment rate still inched higher from 13.0% to 13.7% though
  • Canada’s strong jobs numbers, combined with higher oil prices and an improvement in risk sentiment, pushed CAD higher during the release
  • Analysts see another 400,000 workers gaining jobs in June
  • Unemployment rate could improve from 13.7% to 12.1%
  • The IVEY PMI (July 7, 2:00 pm GMT), a leading indicator for the official labor market numbers, is seen jumping from 39.1 to 50.0 in June

Market risk sentiment

  • A lack of top-tier releases from other major economies will put the investors’ focus on coronavirus concerns
  • Trade tensions between the U.S. and Canada, as well as the U.S. and China can also affect the appetite for Loonie
  • Crude oil prices, one of Canada’s biggest exports, will be affected by headlines over economies reopening

Technical snapshot

  • The Loonie may be “oversold” against its fellow comdolls on the daily time frame
  • CAD/JPY is nearly in Stochastic’s “overbought” region
  • Watch out for CAD hitting “overbought” conditions against USD
CAD Forex Pairs Stochastic from MarketMilk
CAD Forex Pairs Stochastic from MarketMilk
  • CAD is on short and long-term bearish trends against AUD, CHF, and NZD
  • CAD is decidedly bullish against GBP
  • Watch out for retracement or reversal opportunities on CAD/JPY, EUR/CAD, and USD/CAD
CAD Forex Pairs SMA from MarketMilk
CAD Forex Pairs SMA from MarketMilk
  • The Loonie was most volatile against the yen, Kiwi, pound, and euro in the last seven days
CAD Forex Pairs Volatility from MarketMilk
CAD Forex Pairs Volatility from MarketMilk