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