Rising oil prices weren’t much help for the Loonie, which struggled for another week thanks to disappointing data from Canada, counter currency flows, and broad risk sentiment slipping negative at the end 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

Tuesday:

Canadian Manufacturing sales increased for the third consecutive month, rising 7.0% to $53.1B in July on higher sales of motor vehicle and parts. Nevertheless, manufacturing sales remained 5.4% below February’s pre-pandemic levels.

Canadian national home sales rose 6.2% m/m in August.

Oil prices began its rally for the week during the Tuesday session, bid up as Hurricane Sally threatens U.S. output and inventories.

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

Wednesday:

Canada’s annual inflation remained at 0.1% in August

Canada’s international transactions in securities generated a net outflow of funds from the Canadian economy of $9.8 billion in July.

Thursday:

ADP Canada National Employment Report for August: -205K m/m

Friday:

Canadian retail sales rose 0.6% to $52.9 billion in July, led by higher sales at motor vehicle and parts dealers and gasoline stations.

The Loonie saw general weakness, especially during the U.S. session as broad risk sentiment shifted negative thanks to a combination of scenarios ranging from a low expectancy of a new stimulus package from the U.S. government, the possibility of the U.K. locking down once again, and as the U.S. tech sector continues to fall.