CAD Weekly Review (April 29 – May 3)

Mixed week for the Loonie thanks to counter currency influences, oil, and comments from BOC Governor Stephen Poloz.

The Canadian Dollar

Canadian Headlines and Economic data

Tuesday:

• Following 0.3% growth in Jan., Canadian GDP contracted 0.1% in Feb. as both goods-producing & services-producing industries declined
• Prices for products manufactured in Canada rose 1.3% in March
• Bank of Canada chief sees economy starting to shrug off headwinds later this year – this event correlates with the broad move higher in CAD pairs, likely due to fading rate cut speculation after Poloz’s comments.

Wednesday:

• Manufacturing conditions deteriorate for the first time since February 2016
• Bank of Canada says interest rates to rise if economic headwinds dissipate

Thursday

• Oil prices fall 2% as US stockpiles surge, offsetting geopolitical tension – oil movements were arguably the driver for many CAD pairs to fall into the red on Thursday (as seen below).