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