Mixed price action from the Loonie this week as traders tried to balance positive oil moves, geopolitical headlines, and net negative economic updates from Canada.

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:

Record improvement in Canadian business conditions during December – “The headline seasonally adjusted IHS Markit Canada Manufacturing Purchasing Managers’ Index® (PMI®) registered 57.9 in December, up from 55.8 in November, signaling the strongest overall improvement in business conditions since the survey began in October 2010. The headline index has now posted above the 50.0 neutral value in each month since July”

Tuesday:

The Canadian Industrial Product Price Index fell 0.6% m/m in November, while the RMPI increased 0.6% m/m

Oil rises on plans that Saudi Arabia will cut its oil production, correlating with CAD’s late rally against most of the majors during the U.S. session. It underperforms against the Kiwi and Aussie, likely on the broad risk-on conditions, influenced by news that the Democratic party retakes control of the U.S. Senate, increasing speculation that more stimulus will be coming to support those hit hard by the pandemic.

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

Thursday:

Canada’s merchandise trade deficit with the world narrowed from $3.7 billion in October, to $3.3 billion in November. – “Canada’s merchandise exports increased 0.5%, with gold exports posting the largest increase. Imports edged down 0.3%, on lower imports of industrial machinery, equipment and parts.”

Canada Ivey PMI falls to 46.7 in December 2020 vs. 52.7 in November 2020

Friday:

Canada loses 62,600 jobs in December, first decline since April – This was “more than double analysts’ expectations of a decline of 27,500, while the unemployment rate edged up to 8.6%, in line with expectations. Employment remains 3.3% below pre-pandemic levels.”

This post first appeared on babypips.com

You May Also Like

Rupee falls by 9 paise to 83.18 against US dollar

The rupee declined by 9 paise to 83.18 against the US dollar…

Event Guide: BOC Monetary Policy Statement September 2023

The Bank of Canada (BOC) is up in a few days! Word…

JPY Weekly Forecast – Waiting for Fresh Catalysts

Bulls and bears played tug-o-pips and caused wide ranges on a lot…

Daily Forex News and Watchlist: AUD/JPY

The Reserve Bank of Australia (RBA) will kick off the list of…