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A quiet week of updates from Canada, which means the strong performance in the Loonie was due to counter currency weakness and a rebound in global risk-on sentiment after an early week of extreme geopolitical fears.

Overlay of CAD Pairs: 1-Hour Forex Chart
Overlay of CAD Pairs: 1-Hour Forex Chart

Canadian Headlines and Economic data

Monday:

Overlay of CAD Pairs & Oil (Black Line): 1-Hour Forex Chart
Overlay of CAD Pairs & Oil (Black Line): 1-Hour Forex Chart

Tuesday:

Wednesday:

  • The Loonie saw broad strength during the U.S. trading session despite falling oil prices and no direct catalysts from Canada. The argument could be that it rallied with risk sentiment shifting away from negativity after a round of extreme risk-off sentiment on Tuesday. Or it’s possible that it was a rise in relative value as other major currencies were being hit on other issues (EUR & GBP hurt by Brexit developments, JPY & CHF lower on rebounding risk-on sentiment, USD weaker on negative U.S. geopolitical news, etc.).

Thursday:

Friday:

  • The news of the day to shake up the financial markests was that the White House deliberated blocking on all US investments in China.  This is a pretty big deal that likely increased speculation that the U.S.-China trade deal gets a lot harder to get done, thus extending the uncertainty that looms over global economic growth and the markets. The Loonie saw a mixed reaction against the majors, but managed to hold on to its gains for the week.