Partner Center Find a Broker

Canada won’t be printing market-moving data this week, which means that the Loonie will likely dance to the tune of its counterparts.

So, which catalysts can move the comdoll this week?

I have my eye on these few points:

Macklem’s speech (Feb 23, 5:30 pm GMT)

  • Bank of Canada (BOC) Governor Tiff Macklem will give an online speech about the pandemic’s impact on the central bank’s outlook
  • BOC has strongly hinted that it won’t raise interest rates until at least 2023
  • Expect some optimism over the vaccine rollout and higher crude oil prices, but also caution and eyes on growth and consumer prices

Overall CAD demand

  • Vaccinations in the U.S. – Canada’s biggest trading partner – is also improving Canada’s economic outlook
  • Optimism over the global recovery is boosting crude oil prospects and the demand for the oil-related Loonie
  • U.S. Treasury yield trends and rallies in other high-yielding assets can extend the Loonie’s gains against its lower-yielding counterparts

Technical snapshot

  • RSI considers CAD/JPY “overbought” on the daily time frame
  • CAD/CHF is also nearing overbought levels
  • CAD may soon reach “oversold” levels against the Aussie
CAD Forex Pairs RSI from MarketMilk
CAD Forex Pairs RSI from MarketMilk
  • EMAs reflect the Loonie’s short and long-term bullish trend against the safe-havens and the euro
  • CAD is still on short and long-term bearish trends against NZD, GBP, and AUD
CAD Forex Pairs EMAs from MarketMilk
CAD Forex Pairs EMAs from MarketMilk
  • CAD saw the most volatility against the safe-havens and NZD 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 Feb. 15 – 19!