Loonie tunes in to Chinese growth data

The middle of this week is rich with potential market-moving events.

Watch the Canadian dollar. The loonie has been stuck in a rough range between C$1.24 to C$1.28 per buck for the past three months, consolidating around its weakest level since March 2009.

News of China's poor trade data at the start of the week hit the loonie and peers, the kiwi and Aussie dollars.

This shows the market remains alive to the "commodity-currency" trade and means those units should be sensitive to China's first-quarter GDP data due for release on Wednesday.

Later in the day the Bank of Canada will deliver its interest rate decision. No change from 0.75 per cent is expected, but the accompanying Monetary Policy Report should provide clues to the central bank's thinking.

Also, note the European Central Bank's policy decision will be delivered on Wednesday rather than the usual Thursday.

Doubtless president Mario Draghi will be pressed at the press conference for his views on how successful his €60bn-a-month bond-buying programme is proving in stimulating the bloc's economy.

The euro and sovereign paper may be sensitive to any comments addressing whether the ECB's actions - by leaving such a large proportion of the bond sector with negative yields - are compromising financial market efficiency.

And there's more. Poland's central bank also is due to deliver its policy decision and the Fed publishes its Beige Book of economic anecdotes.

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