The CAD showed early gains this morning but has since retraced and is trading virtually where we opened the week. Fundamentals were mixed with the ADP Non-Farm Employment Change posting at a gain of 208,400 jobs compared to last month’s loss of 2.3M. Wholesale Sales missed the mark reporting at -21.6% vs. the expected -11.6%.

The CAD is back to trading where we opened the week after a push higher the past couple of sessions. Fundamentals were limited today but not overly impressive which has pushed the Loonie downwards.  CPI reported at a disappointing 0.3% vs. the expected 0.85, while Core CPI came in at a deflationary -0.1%. Friday’s Core Retail Sales numbers remain the only first tier release for the week.

The CAD is holding onto its strong undertone and is trading in the top half of the range we have seen so far this week. Overall risk sentiment and appetite are remaining the main drivers for the Loonie as of late with economies continuing to reopen. Fundamentals today were limited to second tier Foreign Securities Purchases which posted a massive beat reporting at 49.04B vs. the expected 5.00B.

In this update, I want to explain why typical bank FX forecasts are uninformative and why it is extreme events (and their impact on your business) that we should be concerned about.

The CAD is trading just below the level we saw at the end of last week after retracing some early morning losses today. With no first tier fundamental news this morning the Loonie should trade in line with the broader market sentiment. Wednesday’s inflation numbers are the first important release out of Canada for the week.

The CAD has retraced some of yesterday’s major losses now sitting about a cent and a half below this week’s highs. Fundamentals today were limited to second tier Capacity Utilization Rate which posted a narrow miss coming in at 79.8% vs. the expected 80.1%. Fear of a second wave of Coronavirus cases seem to be gripping markets and risk aversion has been the main driver for the losses.             

The CAD has tumbled and is down over a cent this morning as the market has regained it rick off attitude. No fundamentals to report on is leaving the Loonie moving with the broader tone of the market. Crude has also taken a hit sitting in the mid-$36 range.

The CAD is posting slight losses this morning even with poor US fundamental news and ahead of the Fed later today. Oil has fallen slightly and an increase in the risk-off mood of markets are the main catalyst for the USD strength. No news out of Canada to report on today leaves the only remaining data point this week to Friday’s Capacity Utilization Rate.             

The CAD has struggled in overnight trade showing sharp losses but has since retraced some of this weakness and is trading just below where we opened the week. Fundamentals were limited to second tier Corporate Profits which reported at -38.4%. The remainder of the week is relatively quiet out of Canada and we should see the Loonie trade based on overall market sentiment and momentum.

The CAD is starting the week off strong adding to the impressive gains that we saw throughout last week. Fundamentals were solid today with Housing Starts posting a healthy beat at 193K vs. the expected 160K. This week is fairly quiet with regards to news with no first tier releases scheduled.