CAD sank to its lowest level against the dollar since June 2017 at the end of last week (76.41cents) signalling troubling times for the north American currency.
Clashes over oil stockpiles between OPEC and the States have ricocheted sending the Looney (CADs alter ego) into a spiral. Deeply dependent on their oil reserves, Wednesday’s Crude Oil Inventories at 2.30pm GMT, could change its fortunes again.
But oil isn’t the half of it. Unhappy grumblings about the NAFTA in Canadian economic circles and the potential looming trade war with their southern neighbour weren’t helped by Trump’s glibly delivered false news data in his meeting with Trudeau. Admitting he made up details about a trade deficit, Trump seems to have no qualms about upsetting the States’ friends around the world.
A speech by Reserve Bank of Canada’s Senior Deputy Governor Wilkins could have a few tidbits to entice traders to make a call on how to close the week at 6.45pm GMT on 22nd. But CAD investors will be watching two key figures apart from Trudeau and Trump this Friday.
Rocky CPI figures (23rd 12.30pm GMT) will be watched hoping for another gain after the surprisingly large 0.7% against the 0.4% predicted last month. Core Retail Sales, Friday 23rd March at 12.30pm GMT, are more volatile heading down to -1.8% against 0.1 gain predicted last month. This month it could go either way but another negative would sting Looney bulls badly.