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
- 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 saw the most volatility against the safe-havens and NZD in the last seven days
Missed last week’s price action? Read CAD’s price recap for Feb. 15 – 19!
