The Loonie danced to the tune of its counterparts last week.
Can the bulls and bears find direction from Canada’s data releases?
Take a look at the potential catalysts that might affect CAD’s prices!
Mid-tier data releases
- New motor vehicle sales (Feb 15, 1:30 pm GMT) to weaken from 132K to 120K?
- Manufacturing sales (Feb 15, 1:30 pm GMT) seen growing by 0.6% (from -0.6%)
- Monthly inflation (Feb 17, 1:30 pm GMT) to show 0.2% uptick
- Annual inflation expected to speed up from 0.7% to 0.8%
- Annual core inflation could dip from 1.5% to 1.4%, which would ease pressure on the Bank of Canada (BOC) to tighten its easy policies anytime soon
- ADP non-farm employment change (Feb 18, 1:30 pm GMT) estimated at 10K (from -28.8K)
- Retail sales (Feb 19, 1:30 pm GMT) to drop by 2.6% (after 1.3% increase)
- Core retail sales expected at -3.0% (from 2.1%)
Market risk appetite
- Unless we see significant hits or misses in Canada’s CPI and retail sales data, CAD bulls and bears could take their cues from the Loonie’s major counterparts
- News related to vaccinations, stimulus (both monetary and fiscal), and easing lockdown measures would boost appetite for high-yielding currencies like CAD
- PMI reports from the U.S., Eurozone, U.K., Japan, and Australia can affect overall risk-taking in the markets
Technical snapshot
- Stochastic considers the Loonie “overbought” against the dollar and the yen
- The Loonie may be “overbought” against the pound and the Aussie on the daily time frame
- Moving averages suggest that the Loonie is in short and long-term bullish trends against the safe-havens and the euro
- SMAs also show CAD in short and long-term bearish trends against the pound and its fellow comdolls
- CAD saw the most volatility against the safe-havens and the Kiwi in the last seven days
