Canada CPI mark bottom in CAD?

Canada CPI is coming in few minutes. What do we expect? A lot of Canadian dollar pairs are showing possible bottoms. If you take gbp/cad or eur/cad as an example we can see clear resistance levels that both Euro and Pound were not able to break in a few years time. However, I do not rule the chance that this will change. I hope you see what happens in commodities. Gold has lost ground below ‘its’ feet and most other commodities are falling too. 

The same can be said about commodity currencies. Australian dollar as well as New Zealand dollar have been terribly falling recently. So, it is very probable that ‘loonie’ will fall too. Do not forget that it is highly correlated to oil and look what is happening to oil.

Euro up and Loonie down

Euro had mixed reactions on a little bit better than expected CPI data from Europe. What will happen to European currency next week is hard to tell. However, looking at eur/usd price action you might guess that 1.3150 level is probably in the cards. At least, that's what I am getting ready for Monday and Tuesday. It is not quite clear whether eur/gbp will follow the price action. Time will show. I will concentrate on eur/usd for now.

Now, loonie went down against most currencies. The data was better than expected. Unfortunately, or should I say fortunately Canadian dollar went down. usd/cad and eur/cad are trying to make new highs and found it difficult to do for some time now. Next week could be the breaking point. I will post key events for the coming week tomorrow. One thing is clear, it will be key for commodity currencies. See you tomorrow.