Another week, another chance to trade the Loonie!
Will this week’s data releases dictate CAD’s trends? Or will crude oil and risk appetite headlines dominate the comdoll’s prices?
Check out the potential catalysts you should prepare for if you’re trading the Loonie in the next couple of days!
Domestic data releases
- Inflation rate (Nov 18, 1:30 pm GMT) seen maintaining its -0.1% pace in October
- Core inflation rate could remain at 1.0%
- Annual inflation to slow down from 0.5% to 0.3%
- ADP non-farm employment change (Nov 19, 1:30 pm GMT) to ease from -241K to -200K
- Retail sales (Nov 20, 1:30 pm GMT) to stagnate in October?
- Core retail sales expected at 0.2% (from 0.5%)
Crude oil price action
- Canada is a yuuuge oil exporter, so CAD tends to react to oil-related news
- Crude oil has found support from the U.S. ruling out a lockdown even as European countries restrict economic activities
- The OPEC+ Joint Ministerial Monitoring Committee will meet tomorrow and might make recommendations on production cuts for 2021
- It won’t be until November 30 OPEC+ meeting when we’ll know if members will take the committee’s recommendations
- Rising coronavirus cases in other major economies could raise lockdown concerns and weigh on global demand prospects
- New vaccine updates will also affect the high-yielding Loonie’s intraweek trends
- RSI is flagging CAD’s “oversold” conditions against NZD
- CAD/JPY and CAD/CHF remain in neutral territory on the daily time frame
- SMAs reflect CAD’s short-term bearish pressure across the board
- Watch out for retracement or reversal opportunities on CAD/JPY
- CAD remains on short and long-term bearish trends against NZD, GBP, and AUD
- CAD was most volatile against NZD, GBP, JPY, and CHF in the last seven days