The Loonie showed the market why it’s nicknamed after a flightless bird during Friday’s trading when it gave up 59 pips to the dollar. USD/CAD closed the week at 1.0105, ending the Loonie’s 6-week winning streak. Tsk, tsk.
Too bad for the com-doll, better-than-expected figures we saw weren’t enough to convince traders to show it some love. Statistics Canada reported that manufacturing sales for August grew by 2.0%, beating its 0.5% forecast and erasing the 1.1% decline it posted in July. There was also motor vehicle sales report for the same month which showed a softer decline at 4.8% than what the market was bracing for at 5.0%.
We’re in for a treat this week with a handful of high-caliber reports for the Loonie and we’ll kick start things tomorrow with the BOC’s interest rate announcement at 1:00 pm GMT. A lot of my buds in the FX hood are not keeping their hopes up for another hike given that consumer spending and employment have both declined since the last rate announcement.
Then on Wednesday the central bank will release its Monetary Policy report along with BOC Governor Mark Carney’s speech. For that, you may want to keep an ear out for hawkish mumbo-jumbo if you want to place your bets on the com-doll. We’ll then end week with the CPI reports for September and retail sales report for August on Friday.
Happy trading everyone!