Loonie price action was mostly choppy as traders balanced a broad risk-on lean vs. mixed but arguably net negative Canadian economic updates.

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:

Canada Housing Starts Climbed 23.1% in January to 282,428

Canadian manufacturing sales hit $54.2 billion in December as renos push up lumber prices

On top of the positive economic updates from Canada, CAD was likely supported by the pop in Oil as it hits 13-month highs.

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

Tuesday:

International transactions in securities generated a net outflow of funds of $21.9 billion from the Canadian economy in December.

“On an annual basis, foreign investors acquired a record amount of $141.1 billion of Canadian debt securities in 2020.”

Canadian home sales up 2% in January, set new record

The Canadian Real Estate Association said “actual sales, not seasonally adjusted, rose 35.2% from a year earlier, while the group’s HomePrice Index was up 13.5% from last January and up 1.9% from December.”

Wednesday:

Canada CPI accelerates in January to 1.0% y/y
vs. 0.7% y/y in December; “On a month-over-month basis, prices rose 0.6% in January.”

Saudi Arabia Set to raise oil output amid recovery in prices

Thursday:

ADP Canada National Employment Report: Employment in Canada Decreased by 231,200 Jobs in January 2021

“The December total of jobs added was revised from -28,800 to 338,200.”

Friday:

Canada December retail sales slump 3.4% as COVID restrictions bite

“Analysts in a Reuters poll had on average, forecast a 2.5% decline in overall sales in December. Statscan revised November’s gain up to 1.8% from an initial 1.3%.”

Oil drops as investors gauge the big chill impact on U.S. refineries

“Brent crude futures ended the session down $1.02, or 1.6%, at $62.91 a barrel while U.S. West Texas Intermediate (WTI) crude fell $1.28, or 2.1%, to settle at $59.24.”

This post first appeared on babypips.com

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