The Loonie was a mixed performer until we saw a late rally supported by oil and Middle East tensions to put it near the top at the end of the week!
Canadian Headlines and Economic data
- Canadian wholesale trade falls 1.8% in May on lower auto sales – this correlates with a broad strong move lower in Loonie pairs on the session, but on the chart below, we can see oil took a spill during the U.S. session as well so that may have been a factor on the fall in Loonie pairs.
- There was somewhat of a uniform drop lower in Loonie pairs, possibly on geopolitical concerns (Boris Johnson wins U.K. PM; no-deal Brexit odds rise) and weak global economic updates (Eurozone PMI shows manufacturing downturn deepens; IMF lowers global growth forecasts), and then a small rally higher later in the U.S. that may be contributed to a bounce in oil prices ahead of U.S. oil inventory data.
- Oil climbs on Iran tensions, U.S. inventory decline – with a lack of updates and news from Canada, these stories are possibly the reason for support for the Loonie on Thursday
- Reports of Iran test-firing a medium-range ballistic missile may have been a contributor to oil staying positive into the weekend, possibly giving the Loonie the small broad lift higher against the majors before the end of the U.S. trading session.