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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 Forex Pairs Stochastic from MarketMilk
CAD Forex Pairs Stochastic from MarketMilk
  • 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
CAD Forex Pairs EMAs from MarketMilk
CAD Forex Pairs EMAs from MarketMilk
  • The Loonie was most volatile against the yen and the European currencies in the last seven days
CAD Forex Pairs Volatility from MarketMilk
CAD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read CAD’s price recap for Aug. 31 – Sept. 4!