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With no major news or headlines from Canada, the Canadian dollar rode early positive economic updates from around the globe to a total win against the other major currencies.

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

Canada Headlines and Economic data

Monday:

Trudeau Taps Carney for Help in Crafting Recovery Plan

Traders were leaning a bit positive to start the week after a round of better-than-expected Chinese data hit the wires on Monday. This kicked off a rally in oil prices, which likely helped support the Canadian dollar through the Tuesday session.

Tuesday:

Canada Housing starts in July at 204K vs. 199K in June

The Loonie continued its slow climb higher on the session despite a big pullback in oil. Global risk sentiment leaned positive during the London session on positive vaccine headlines (Russia has registered the world’s first coronavirus vaccineJ&J eyes one billion doses of potential COVID-19 shot in 2021).

Overlay of CAD Pairs & Oil (Black Line): 1-Hour Forex Chart
Overlay of CAD Pairs & Oil (Black Line): 1-Hour Forex Chart

Wednesday:

Risk sentiment leaned positive during the Wednesday session to likely support the Canadian dollar and oil prices, this time on improving global data (e.g., Industrial production up by 9.1% in both euro area and EUU.S. consumer price index rose 0.6% m/m in July) and growing vaccine hopes.

Thursday:

Mixed session for the Loonie on a light news day, but it looks like traders leaned negative during the Asia trade before switching positive as risk sentiment improved during the London and U.S. sessions on improving U.S. data. (U.S. weekly jobless claims fell to 963,000, first time below 1 million since mid-March)

Friday:

Canadian Manufacturing sales rose by a record 20.7% to $48.7B in June, following an 11.6% increase in May

Broad move lower by the Loonie against the majors, likely on some risk-off vibes ahead of the weekend as we continued to see uncertainty as Congress fails to strike a deal on a new U.S. stimulus package, and possibly on low confidence that the recent rebound in economic activity is sustainable given the continued pandemic.