The Loonie survived rising geopolitical tensions and oil’s roller coaster week to finish barely net positive against the other major currencies.
Canadian Headlines and Economic data
- The uniform shift lower in Loonie pairs may have stemmed from global risk sentiment, which began to turn more negative on the week starting on Tuesday. The latest developments in the U.S.-China trade story seemed to sour as Donald Trump says he’s personally holding up trade deal with China ahead of G20
- It can also be argued that oil’s turn lower on Tuesday put pressure on the Canadian dollar, a moved sparked by expectations of rising U.S. crude supplies.
- Further uniform weakness in CAD pairs after the latest EIA reported a much bigger-than-expected increase in crude inventories pushed oil lower.
- The broad rally in CAD pairs on Thursday during the European session may have stemmed from speculation that OPEC will continue to curb supplies as their outlook on demand looks grim.
- Nationally, new house prices in Canada remained unchanged in April for a third consecutive month
- CAD pairs ended the week taking steps back, likely on one more boost higher in risk aversion behavior during the U.S. session, likely on the rising geopolitical tensions after oil tanker bombings in the Middle East. U.S. dollar strength also likely played a role in putting pressure on the majors after a better-than-expected U.S. retail sales number.