The Loonie takes the top spot among the majors despite oil’s mid-week fall and the late week Canadian jobs report signaling a big pullback in the employment environment from this years monster gains so far.
Canadian Headlines and Economic data
- OPEC set to extend oil production curbs by nine months – This was the catalyst for oil’s early week rally, which likely propped up the Loonie despite an empty calendar from Canada. Check out oil’s Monday pop higher below:
- Canada proposes meat export solution, pushes back on China’s criticism
- Canada’s merchandise trade balance with the world was in a $762 million surplus in May, which followed a $1.1 billion deficit in April – Loonie saw a quick move to the upside, but it’s also arguable that U.S. dollar played a role after it saw weak updates in trade balance, ADP Non-farm payrolls, and ISM services PMI
- A slight dip in Loonie pairs during the Asia and morning London session, likely a move with falling oil prices on slowing U.S. demand and global economic concerns
- Canada’s economy lost 2,200 jobs last month; unemployment ticks up 0.1% to 5.5% – a mostly bullish reaction to this economic update despite being very underwhelming. It’s likely traders are giving this update a pass given the surprisingly strong updates in the first half of the year. The bounce in oil may have also contributed to Loonie’s strength as the black gold inches up on Iran tensions and OPEC cuts.
- Canada’s Ivey PMI hits a 4-month low as expansion slows in June