The Loonie comes out mixed but net positive in quiet price action this week. With a lack of major catalysts from Canada, the overall gain was likely on the positive global risk sentiment thanks to improving U.S.-China trade deal story, and despite a weak week for oil prices. Intraday price action seems to have been more influenced by counter currency flows.
Overlay of CAD Pairs: 1-Hour Forex Chart
CAD Weekly Performance from MarketMilk
Canadian Headlines and Economic data
Monday:
- Bank of Canada Business Outlook Survey (Winter 2019–20) suggests a small improvement in business confidence.
- Expectations for future sales growth remain positive
- Plans to increase investment spending are less widespread
- A majority of firms are planning to expand their workforce
- A majority of firms expect inflation to remain between 1% – 2%
- Oil is knocked lower on the session and couldn’t recover for the rest of the week, but it didn’t seem to have a clear influence the Loonie:
Overlay of CAD Pairs & Oil (Black Line): 1-Hour Forex Chart
Tuesday:
- China to buy more U.S. energy, manufactured goods in trade deal
- API data show a weekly climb of 1.1 million barrels in U.S. crude supply, sources say
Wednesday:
- Canadian home sales inch lower in December by 0.9% m/m
- OPEC expects lower demand for its oil as U.S. hits new milestone
- U.S. and China sign the Phase 1 trade deal.
- Factbox: What’s in the U.S.-China Phase 1 trade deal
Thursday:
- ADP Canada National Employment Report: Employment in Canada Increased by 46,200 Jobs in December 2019
- Oil gains after US-China trade deal, fall in inventories
Friday:
- Canadian investment in foreign securities increased to $5.5B in November as Canadian investors resumed their purchases of foreign equities
- Canadian economy expected to gather steam, keeping BoC at bay in 2020: Reuters poll
