Choppy run for Loonie traders, but ultimately a net positive one as the bulls were likely leaning on gains in oil prices and net positive data from Canada for most of the week.

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:

Foreign investors reduced their holdings of Canadian securities by $13.5 billion in June

Tuesday:

Net negative moves for CAD during the U.S. trading session without apparent direct catalysts. It’s possible that the somewhat negative risk sentiment leans during the U.S. session on geopolitical concerns (U.S. Warns Colleges to Divest China Stocks on Delisting Risk) and U.S. stimulus concerns (Treasury Secretary Mnuchin says Democrats are unwilling to strike a ‘reasonable’ relief deal) may have been a factor.

Wednesday:

The Canadian Consumer Price Index (CPI) rose 0.1% on a year-over-year basis in July, down from a 0.7% increase in June. Excluding gasoline, the CPI rose 0.7%.

Canadian Wholesale sales continued to rebound in June, jumping 18.5% to $62.1 billion, building on a 5.8% gain in May.

The broad rebound during the Wednesday U.S. session (with exception to the U.S. dollar) seems to correlate with the release of the above data and a small bounce in oil prices:

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

Thursday:

Employment in Canada increased by 1,149,800 jobs from June to July according to the July ADP Canada National Employment Report.

Friday:

Canadian Retail sales were up 23.7% in June to $53.0 billion

Canada New Housing Price Index: 0.4% m/m in July

Mixed but net positive session for the Canadian dollar during the Friday session, mainly driven by counter currency flows as the euro and Sterling weakened after disappointing business sentiment and Brexit updates came out from Europe.