Mixed week for the Loonie as Canadian data also came in mixed, but overall closing the week positive thanks to a spike higher in inflation data on Wednesday and overall positive risk sentiment.
Canadian Headlines and Economic data
- International transactions in Canadian securities generated a net inflow of funds in the Canadian economy of $9.3B in Oct.
- Canadian National home sales edge higher in November by +0.61%
- Early week positive global risk sentiment was likely a contributor to Loonie strength, sparked by news that China’s factory, retail sectors shine as trade tensions thaw. This was also likely the catalyst for oil’s move higher:
- There were 562,900 Canadian job vacancies in the third quarter, up 12,200 (+2.2%) from the same quarter a year earlier. This was the slowest pace of year-over-year growth in job vacancies since the third quarter of 2016.
- Canadian manufacturing sales declined 0.7% to $57.1 billion in October, the second consecutive monthly decrease.
- The Canadian Consumer Price Index (CPI) rose 2.2% on a year-over-year basis in November, up from a 1.9% increase in each of the previous three months
- Canadian home prices rise in November, beating seasonal trend
- Global risk sentiment was trending positive on the session to likely help the Loonie higher. There doesn’t seem to be a direct catalysts for the risk-on vibe, but this could have stemmed from news of improving Asian business sentiment and China’s central bank adding more liquidity to ease monetary conditions.
- Canadian Wholesale sales declined 1.1% to $64.2 billion in October, the second decrease in five month
- ADP Canada National Employment Report: +30K in October
- New housing prices were down 0.1% in November, following three consecutive monthly increases in Canada.
- Canadian Retail sales decreased 1.2% to $50.9 billion in October.
- Oil’s fall on the Friday session was likely an additional drag to the Canadian dollar with the weak retail sales & housing data; the weakness in oil prices was likely sparked by a rise in the U.S. oil rig count.