Canada won’t be printing a lot of market-moving data this week, which means that CAD traders will look at countercurrency action and risk sentiment for direction.
Which market themes should you pay attention to?
Low-tier economic releases
- Wholesale sales (Feb 12, 1:30 pm GMT) seen dropping by 1.7% (from +0.7%) in December
- Monthly PPI (Feb 12, 1:30 pm GMT) could slow down from 1.8% to 1.5%
Crude oil prices
- If last week’s price action is any clue, CAD traders will look at crude oil price movements for direction this week
- Vaccinations around the globe, easing lockdown measures, and stimulus talks in the U.S. can influence the demand for Black Crack and the Loonie
- Overall U.S. dollar demand can also affect USD/CAD and the rest of the major CAD pairs
Technical snapshot
- CAD has hit “overbought” Stochastic levels against CHF and JPY
- CAD may soon reach “oversold” status against NZD and GBP on the daily
- EMAs show the Loonie’s short and long-term bearish trends against its fellow comdolls and the pound
- CAD remains in bullish trends against the safe-havens and the euro
- The Loonie was most volatile against the other comdolls, the U.S. dollar, and the pound in the last seven days
