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.
Canadian Headlines and Economic data
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:
- 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
- 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.
- 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