The Loonie traded mixed early in the week, but bounced higher after the latest monetary policy statement from the Bank of Canada. A turn in risk sentiment and a terrible May revision to jobs numbers took the bulls down, but not enough to take away the Canadian dollar’s net positive gains for the week.
Canadian Headlines and Economic data
Despite the arguably negative headlines from the BOC event, the rhetoric within the statement and press conference was somewhat positive on the outlook, that we’ll see a sharp rebound as the country reopens and prolonged, slow recovery after. This is likely why we saw the Loonie rebound on the session, along with a positive boost to global risk sentiment on positive vaccine news from Moderna and positive earnings numbers from U.S. equities.
ADP Canada National Employment Report: Employment in Canada Increased by 1,042,900 Jobs in June 2020 – The May total of jobs added was revised from 208,400 to -2,951,400!
Along with the ugly revision to the May jobs numbers, global risk sentiment flipped negative during the U.S. session on a combination of negative U.S. economic data (U.S. Weekly jobless claims rise by more than 1 million for 16th straight week) and geopolitical news (U.S. Weighs Sweeping Travel Ban on Chinese Communist Party Members) to likely add to the slide lower in the Loonie on the session.
The slide lower in the Loonie continued into the weekend on Friday, despite the broad market leaning somewhat “risk-on” after positive comments from the Director of the National Institute of Allergy and Infectious Diseases (Dr. Fauci is optimistic we’ll see COVID vaccine breakthroughs by early Fall).