Canada is about to pepper the week with a bunch of reports!
Think you’re ready to trade the events?
Here’s what market geeks are expecting.
CPI reports (Aug 19, 1:30 pm GMT)
- Annualized prices rose by 0.7% in June, the fastest since March 2011
- Monthly headline and core retail sales figures also came in better-than-expected, which helped push CAD higher despite a risk-off trading environment
- Monthly inflation is expected to slow down from 0.8% to 0.4%
- Annual headline inflation to ease from 0.7% to 0.5%?
- Annual core inflation to maintain its 1.1% growth
Retail sales (Aug 21, 1:30 pm GMT)
- Monthly headline retail sales expected to accelerate from 18.7% to 24.5% in June
- Core retail activity could also see faster growth (from 10.6% to 12.0%)
Market risk appetite
- CAD could continue to take cues from crude oil prices, which dances to the tune of overall risk sentiment
- Updates on coronavirus cases, stimulus plans, lockdown prospects, and vaccine progress will continue to have an impact on CAD’s prices
- EMAs are showing CAD’s short and long-term downtrends against AUD, CHF, EUR, and GBP
- CAD remains bullish against JPY, NZD, and USD
- Stochastic considers the Loonie “overbought” against the Aussie, yen, Kiwi, and the dollar
- The Loonie has been most volatile against the yen and its fellow comdolls in the last seven days