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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.

Overlay of CAD Pairs: 1-Hour Forex Chart
Overlay of CAD Pairs: 1-Hour Forex Chart
CAD Weekly Performance from MarketMilk
CAD Weekly Performance from MarketMilk

Canadian Headlines and Economic data

Monday:

Canadian wholesale sales rose 0.7% to $67.5B in February, a third consecutive monthly gain.

Canadian home prices climb in March, paced by Ottawa-Gatineau

Canadian Oil Prices Turn Negative As Global Demand Vaporizes

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.

WTI Crude Oil 1-Hour
WTI Crude Oil 1-Hour

Tuesday:

Retail sales rose for the fourth consecutive month, up 0.3% to $52.2 billion in February.

Wednesday:

Canadian CPI rose 0.9% y/y in March, down from a 2.2% gain in February.

Canadian New home prices were up 0.3% at the national level in March.

Canadian inflation rate tumbles to near five-year low on diving gas prices

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.

Thursday:

Oil rises for second day as producers trim output to respond to demand loss

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 ProgramsU.S. House to pass nearly $500 billion more in coronavirus relief)

Friday:

The Loonie moved broadly lower during the U.S. trading session without an apparent direct catalyst.