CAD Weekly Review (Nov. 4 – 8)

The Canadian dollar came out as a net winner on Friday, benefiting from mostly positive geopolitical news, enough to counter bearish Canadian economic data at the end of the week.

Canadian Headlines and Economic data

Monday:

• We saw broad Loonie strength during the U.S. trading session, and without catalysts from Canada, this likely stems from global risk sentiment, which was on the upswing to start the week amid further U.S.-China trade deal optimism. This was also likely the catalysts that had oil prices rallying, which was probably a support factor for the Loonie as well.

Tuesday:

• Canada’s merchandise trade deficit with the world narrowed from $1.2 billion in August to $978 million in September.

Wednesday:

• Global risk sentiment soured on Wednesday, likely on news that the U.S.-China trade deal signing could be pushed into December, which was likely the driver for Loonie weakness during U.S. trading hours

Thursday:

• The Loonie and oil were net positive on Thursday, likely on the news that China says it has agreed with U.S. to cancel tariffs in phases which lifted global risk sentiment back to positive.

Friday:

• Following two consecutive months of growth, Canadian employment held steady in October. The unemployment rate was unchanged at 5.5%
• The total value of building permits issued by Canadian municipalities decreased 6.5% to $8.3 billion in September
• October Housing Starts Trend Lower in Canada