Can Loonie bulls build on last week’s gains to extend the comdoll’s uptrends this week? Or will the BOC’s decision and risk sentiment drag it down?
Let’s take a look at potential catalysts that might affect CAD’s prices!
BOC’s policy statement (Sept 9, 2:00 pm GMT)
- The Bank of Canada (BOC) kept its rates steady in July and was generally dovish in its statements
- Optimism over the reopening of Canada’s economy and a general risk-friendly market theme pushed CAD higher across the board
- Analysts aren’t expecting any policy changes from BOC this week
- Traders will look for signs that BOC will take cues from the Fed and renew its inflation-targeting framework
- BOC Governor Tiff Macklem will hold a presser after the statement’s release
Market risk appetite
- With not a lot of top-tier reports scheduled this week, keep an eye out for potential profit-taking from last week’s strong moves
- Lower-tier reports from other major economies can hint at the pace of post-lockdown global growth and affect the demand for the high-yielding Loonie
- Lockdown, stimulus, and vaccine updates will continue to affect the demand for crude oil and influence CAD’s intraweek trends
Technical snapshot
- CAD is about to hit Stochastic’s “overbought” status against CHF
- The Loonie is also near “overbought” levels against the yen and the euro
- CAD may soon be oversold against NZD
- CAD/JPY is on short and long-term bullish trends
- CAD is seeing short-term bullish pressure against most of its major counterparts
- CAD is still mostly bearish against NZD
- The Loonie was most volatile against the yen and the European currencies in the last seven days
Missed last week’s price action? Read CAD’s price recap for Aug. 31 – Sept. 4!
