Fading geopolitical fears and weak-than-expected Canadian updates were likely the themes behind the Loonie’s mixed but net negative performance this week.
Canada Headlines and Economic data
Monday:
Tuesday:
- Canada posts trade deficit of C$1.09 billion in November
- Canada Ivey PMI declines to 51.9 in Dec. vs. 60.0 in Nov.
Wednesday:
- No major catalysts from Canada on the session, but the markets were moving on geopolitical news after Iran fired missiles at U.S. bases in Iraq to spark global risk-off sentiment. Sentiment quickly shifted 180 degrees not too long after the attack after Iran announces it was not seeking further escalation. This didn’t appear to have a huge directional influence on the Loonie, but it sure did have the oil markets moving, net lower on the session; this was likely a net negative influence on the Loonie as well.
Thursday:
- Canadian Housing Starts Trended Lower in December to 212K vs. 220K in November
- The total value of building permits issued by Canadian municipalities decreased 2.4% to $8.1B in November.
Friday:
- Canada added 35,000 jobs in December, capping strong 2019 for employment – this was the likely catalyst for the Loonie’s spike higher during the morning U.S. session, but the Loonie bears took back control quickly, likely on declining oil prices as the risks of further U.S.-Iran military escalation continued to decline.
