CAD Weekly Forecast (May 18 – 22)

CAD Weekly Forecast (May 18 – 22)

Canada is printing its inflation and retail sales numbers this week!

Can they affect the Loonie’s trends from the previous week?

Here’s what you can expect from the events.

Consumer price index (May 20, 12:30 pm GMT)

  • Lower gas prices dragged the inflation rate to a five-year low in March
  • CAD still traded higher at the time thanks to a rebound in oil prices
  • Headline CPI could print at -0.5% (from -0.6%) in April
  • Annualized CPI to dip by 0.1% after gaining by 0.9% in March?

Retail sales (May 22, 12:30 pm GMT)

  • Retail trading gained by 0.3% in February, lower than January’s 0.6% but higher than the 0.2% gain that markets had expected
  • CAD jumped higher at the news though it retraced its moves near the end of the day
  • Headline retail sales could drop by 10.0% in March
  • Core retail sales could dip by 5.0% after a 15.6% drop in February

Market risk appetite

  • Reopening of economies is good news for oil demand, which could prop the oil-related CAD this week
  • Like in last week’s prices, fears of a “second wave” of infections can influence demand for the Loonie
  • U.S.-China trade tensions can affect appetite for high-risk comdolls like the Loonie
  • Manufacturing and services PMIs of major economies (U.S., Euro Zone, U.K., Japan, Australia) can influence risk appetite in the markets

Technical snapshot

  • Stochastic thinks the Loonie is “overbought” against GBP and NZD on the daily time frame
CAD Forex Pairs Stochastic from MarketMilk
CAD Forex Pairs Stochastic from MarketMilk
  • CAD is bearish trends against AUD, CHF, JPY, and USD
  • CAD is bullish against GBP and NZD
  • The Loonie could see a decent retracement or even a reversal against the euro
  Tickmill's Investing Diva, NZDJPY Daily Outlook 25-05-20
CAD Forex Pairs EMAs from MarketMilk
CAD Forex Pairs EMAs from MarketMilk
  • CAD saw the most volatility against NZD, JPY, AUD, and CHF 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 May 11 – 15!

Content Protection by DMCA.com

Drop your queries here! ↴ we will answer you shortly.