The Canadian dollar was beaten up all week thanks to the historic drop in oil prices. The Loonie did manage to give back some of its losses as oil bounced back mid-week, but in the end, it came out as a net loser thanks to last minute selling on Friday.
Canadian Headlines and Economic data
Global risk aversion sentiment dominates the markets, sparked by the historic crash in oil (as seen in the WTI crude chart below), likely contributing to the pressure on Loonie to start to the week.
Risk sentiment switched back to positive as oil bounced higher from record low levels. This likely contributed to the Loonie somewhat broad move higher during the U.S. trading session.
Risk sentiment likely played a role in the Loonie’s positive turn during the Thursday trading session, sparked by oil’s bounced higher from record low levels and more stimulus coming in the U.S. (Fed Focuses on Lending Programs, U.S. House to pass nearly $500 billion more in coronavirus relief)
The Loonie moved broadly lower during the U.S. trading session without an apparent direct catalyst.