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The Canadian dollar takes a broad fall this week as traders leaned negative on broad risk sentiment, the economic outlook, and on oil prices.

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 banks were closed for the Labor Day holiday.

Tuesday:

Broad global risk sentiment was mostly negative on the session, likely contributing to the Loonie’s move lower on Tuesday. The negative vibes was likely a mixed of rising no-deal Brexit fears, weakness in the U.S. equity markets, and disappointing economic updates from Japan and Australia.

There were also oil demand fears as the U.S. Summer season ends to send crude prices lower, likely adding to pressure on CAD.

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

Wednesday:

Bank of Canada maintained the overnight rate at 0.25% and continues QE program of $5B per week of Government of Canada bonds. – traders likely viewed this event as a signal of no further deepening of stimulus measures are needed, and likely the driver for CAD’s small bounce higher after the event.

Canada housing starts rose 6.9% in August

Thursday:

BOC’s Macklem says Bank of Canada will maintain extraordinary stimulus

Friday:

Canadian industries operated at 70.3% of their production capacity in the second quarter, down from 79.8% in the previous quarter.