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Loonie Jumps as Positive Fundamentals Outweigh Domestic Data

October 16, 2018 at 18:33 by Vladimir Vyun

Canadian coins on Canadian dollar billsThe Canadian dollar gained today as positive factors outweighed domestic macroeconomic data, which failed to meet market expectations. The currency gained for the fourth consecutive trading session against its US counterpart.

One of the possible reasons for the loonie’s gains was the positive market sentiment. Another one were stable prices for crude oil.

As for economic data, Statistics Canada reported:

Foreign investment in Canadian securities slowed to $2.8 billion in August, down from $15.3 billion in July.

Analysts had expected a smaller drop to C$10.1 billion.

There will be several more economic reports over the week. The most important of them will be consumer inflation data scheduled for release on Friday. If the data comes out good, it will solidify prospects for an interest rate hike from the Bank of Canada next week.

USD/CAD dropped from 1.2988 to 1.2934 as of 18:23 GMT today. EUR/CAD fell from 1.5037 to 1.4973. CAD/JPY jumped from 86.03 to 86.80.

If you have any questions, comments, or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

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