The Loonie comes out as a net loser this week, beating only the other comdolls as Coronavirus anxiety continues to dominate global risk sentiment and bring oil prices lower.
Canadian Headlines and Economic data
Monday:
- Canadian Wholesale sales rose 0.9% to $63.9 billion in December, following two consecutive monthly declines.
- Coronavirus cases outside China surge, prompting traders to start traders the new week in fear mode and really staying that way through Friday. The Canadian dollar usually falls to the lower-yielding major currencies during risk aversion environments, and that was once again the case this week as it fell to all the majors but the Aussie and Kiwi.
- Oil prices slide 4% on demand concerns as virus spreads – oil prices took a really big hit this week as the probability of the Coronavirus turning into a pandemic rose through out the week.
Tuesday:
- Canadian corporate operating profits grew $3.9B (+3.6%) to $112.3B in the fourth quarter
- Coronavirus further isolates Iran, strains South Korea, Italy
- Oil steadies above $56 as supply constraints counter virus fears
Wednesday:
- U.S. crude drops below $50 as virus spreads in Middle East and Europe
- New coronavirus cases outside China exceeded those in China for the first time, WHO says
Thursday:
- Canada’s current account deficit (on a seasonally adjusted basis) narrowed by $2.1 billion in the fourth quarter to $8.8 billion.
- The average weekly earnings of non-farm payroll employees grew 3.4% y/y in December
- CDC confirms first US coronavirus case of ‘unknown’ origin; California monitors over 8,000
- Oil drops nearly 5%, breaking below $47 as collapse continues
Friday:
- Growth in Canadian real gross domestic product (GDP) slowed to 0.1% in the fourth quarter
- Prices for products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), were down 0.3% in January; Raw materials prices index fell 2.2% m/m in January
- WHO raises global risk from ‘high’ to ‘very high’
- Mexico among 8 more countries to report first confirmed coronavirus cases
- Oil finishes at lowest in over 13 months as coronavirus keeps market in ‘stranglehold’
