Partner Center Find a Broker

The Loonie gained pips against the safe havens but lost to the rest of its counterparts last week. Will Loonie bulls extend their gains this week?

Check out the potential market movers that might influence CAD’s prices:

Lower tier economic reports

  • PPI (Aug 31, 12:30 pm GMT) could accelerate from 0.4% to 0.5%
  • Building permits (Aug 31, 12:30 pm GMT) to by gain another 4.0% in July
  • Markit’s manufacturing PMI (Sept 1, 1:30 pm GMT) seen inching higher from 52.9 to 53.0
  • Trade deficit to widen from 3.19B CAD to 3.5B CAD as both exports and imports slow down

Labor market data (Sept 4, 12:30 pm GMT)

  • Canada’s economy created a net of 418,500 jobs in July as the economy eased lockdown restrictions
  • The unemployment rate also slipped from 12.3% to 10.9%
  • CAD popped higher against all but USD at the time as Uncle Sam also printed strong labor market numbers
  • A net of 385,000 jobs are expected to have been created in August
  • Analysts expect the unemployment rate to further ease from 10.9% to 10.7%
  • The IVEY PMI – a closely watched leading indicator for Canada’s labor numbers – won’t be released until an hour after the official labor data

Technical snapshot

  • The Loonie has gained against all of its counterparts in August, except against AUD where it lost 0.43% in the last month
CAD Forex Pairs Performance from MarketMilk
CAD Forex Pairs Performance from MarketMilk
  • Stochastic is showing the Loonie’s “overbought” conditions against the dollar on the daily chart
  • CAD is also “oversold” against AUD and may soon reach similar conditions against NZD
CAD Forex Pairs Stochastic from MarketMilk
CAD Forex Pairs Stochastic from MarketMilk
  • EMAs show the Loonie’s short and long-term bearish trends against NZD, GBP, and AUD
  • CAD remains bullish against USD, JPY, and CHF
  • Watch out for retracement or reversal opportunities on EUR/CAD
CAD Forex Pairs EMAs from MarketMilk
CAD Forex Pairs EMAs from MarketMilk

Missed last week’s price action? Read CAD’s price recap for August 24 – 28!