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Mixed week for Loonie pairs as Canada’s nearly empty calendar allowed for global risk sentiment and counter currency flows to drive their price action.
Canadian Headlines and Economic data
Monday:
- Canadian housing starts jump 15.8% in March -CMHC
- Value of Canada building permits down 5.7 percent in February
- Oil climbs to five-month high on OPEC cuts, U.S. sanctions and Libya fighting – This story is likely the reason why we saw traders rally Loonie pairs together during the U.S. session, largely ignoring the mixed housing data
Wednesday:
- U.S. crude stockpiles surge to 17-month high; steep gasoline drawdown: EIA – This data release preceded a fall in oil and Loonie pairs into the Thursday session
- With no major catalysts from Canada on Tuesday and Wednesday, it’s likely the surge in oil inventories and the general theme of the BOC likely to take stimulative actions put broad pressure on Loonie pairs during this time.
Thursday:
- New house prices at the national level were unchanged in February, despite growth in some of the housing markets surveyed.
- Canada home prices drop in March for sixth straight month – Teranet
Friday:
- China’s March trade surplus soars past expectations and China’s new yuan loans expand in March – This data sparked global risk-on sentiment, likely lifting oil prices and risk assets with it. This is most likely the reason why we saw the Canadian dollar able to finish in the green against the safe have currencies (JPY, CHF, USD) while falling against the high-yielders (NZD & AUD) and the relatively strong euro.
