The Canadian dollar traded mixed at first, but took the top spot among the major currencies. It was lifted by a bounce in oil prices on Thursday, as well as positive economic updates from Canada at the end of the week.
Canada Headlines and Economic data
Canada Building Permits Fall 14.6% in October – “The previous month’s data was revised to show building permits increased 18.6% in September, compared with a previous estimate of a 17% advance.”
In October, the Industrial producer prices declined 0.4%. (Lumber and other wood products fell 7.0%, mainly driven by lower prices for softwood lumber (-12.7%). Raw material producer prices was up 0.5%
Prices for animals and animal products increased 2.6%, mostly due to higher prices for hogs (+16.9%); strong global demand for pork is responsible for supporting these higher hog prices.
Crop product prices were up 3.1%, led by increases in prices for other crop products (+3.2%), canola (+3.4%) and wheat (+7.5%). Strong demand from China, as well as concerns about production and cold winter weather played a part in these price increases.
Canadian economy notches record growth in third quarter – “Canada’s Q3 annualized growth soared 40.5%, rebounding from a historic plunge in the second quarter, while September real GDP rose by 0.8%.”
Record decline in Canadian labor productivity following record increase the previous quarter – Labour productivity of Canadian businesses dropped -10.3% in the third quarter vs. +10.5% in the second quarter
OPEC+ agrees slight easing of oil cuts from January – “OPEC and Russia on Thursday agreed to slightly ease their deep oil output cuts from January by 500,000 barrels per day”
Canada added 62,100 jobs in the month, triple the median forecast in a Bloomberg survey and down only modestly from the 83,600 gain in October – “The labor market has recovered 81% of the 3 million positions lost during March and April.”