The Loonie managed to get some wins this week despite mixed economic updates from Canada, likely with the help from a strong week in oil prices.
Overlay of CAD Pairs & Oil (Black Line): 1-Hour Forex Chart
Canadian Headlines and Economic data
Monday:
- China to impose tariffs on U.S. goods despite Trump warning – rising tensions between the U.S. and China is likely the catalyst for the early week risk aversion sentiment. This is likely why we saw the Loonie out perform against the other comdolls while under perform against the rest of the majors at the start of the week.
Tuesday:
- Oil prices jump as Saudi energy minister reports drone ‘terrorism’ against pipeline infrastructure – likely brought in Loonie support despite the continued risk-off sentiment from the rising U.S.-China trade tensions.
Wednesday:
- Canada’s inflation rate heated up to 2% in April – on a year-over-year basis, the latest update was slightly disappointing. But compared to the previous month, we saw a much faster pace of price growth and likely a contributor to Loonie’s rally during the session.
- Oil falls after a reported rise in US crude stockpiles; Middle East tensions cap losses – the Middle East tensions not only capped losses but later propped oil higher going into the Thursday trading session.
Thursday:
- Statistics Canada reports Manufacturing sales up 2.1% in March
- ADP Canada National Employment Report: Employment in Canada Increased by 61,700 Jobs in April 2019
- Foreign investors reduced their holdings of Canadian securities by $1.5 billion in March, the first divestment in three months
- Bank of Canada Sees Financial Risks Rising on Weaker Growth
Friday:
- US reaches deal to lift steel and aluminum tariffs on Canada and Mexico – this story not only reduces trade uncertainty for Canada, but also lifted global risk sentiment, both positive factors for the Loonie on the session
