The Canadian dollar takes a step back from recent gains thanks to pressure from falling oil prices and a Canadian CPI update that was weaker than the previous read.
Canada Headlines and Economic data
- Foreign investors acquired $10.2 billion of Canadian securities in May, following two months of divestment
- The Canadian Consumer Price Index (CPI) rose 2.0% on a year-over-year basis in June, down from a 2.4% increase in May – this update seems to correlate and be the catalyst with the broad shift back to the downside for the Loonie against the majors for the week. Decreasing rates of inflation generally supports rate cut arguments.
- Canadian factory sales rise by 1.6% in May on higher autos output
- ADP Canada National Employment Report: Employment in Canada Increased by 30,400 Jobs in June 2019
- The Canadian dollar tumbles on the session despite the bounce back in Canadian ADP numbers, so it’s likely oil’s tumble after Iran offers new nuclear deal if U.S. drops sanctions was the catalysts for the weaker Loonie
- Canadian retail sales declined for the first time in four months, edging down 0.1% to $51.5 billion in May. Excluding sales at motor vehicle and parts dealers and gasoline stations, retail sales decreased 1.0%
- Along with the weaker-than-expected retail sales data, oil takes a beating this week on geopolitical tensions between Iran and the U.S. receding and the possibility of supplies rising, was likely the other major catalyst putting pressure on the Canadian dollar this week