With not a lot going on in Canada, you can bet your neighbor’s cat that Loonie traders will have their eyes on countercurrency price action instead.
Planning on trading the comdoll? Here are potential catalysts you should watch out for!
Lower-tier data releases
- Producer price index (Sept 29, 1:30 pm GMT) to slow down from 0.7% to 0.2% while the annualized reading is expected to stay at -2.3% in August
- Monthly GDP (Sept 30, 12:30 pm GMT) could ease from 6.5% to 3.0% in July
- Markit’s manufacturing PMI (Oct 1, 1:30 pm GMT) to improve from 55.1 to 55.3?
Overall market sentiment
- A lack of potential catalysts in Canada will make the Loonie a good candidate for high-yielding bets
- COVID-19-related headlines (rising number of cases, vaccine updates, stimulus speeches, lockdown prospects) will continue to influence risk appetite
- The U.S. Presidential debate and NFP releases can affect USD’s intraweek trends and take its major counterparts (like CAD) with it
- Brexit and second wave fears in the European region can affect pairs like EUR/CAD, GBP/CAD, and CAD/CHF this week
- The Loonie has lost value against safe havens like the dollar and yen in the last 30 days
- It gained by more than 2% against GBP and AUD
- CAD is also positive against NZD, CHF, and EUR in the past month
- Stochastic considers the Loonie “oversold” against the dollar and yen
- CAD is currently “overbought” against its fellow comdolls (AUD and NZD)
- The Loonie is on neutral ground the European currencies on the daily time frame
- CAD saw the most volatility against AUD, NZD, GBP, and JPY in the last seven days