The Loonie falls following weaker manufacturing data, sluggish crude oil price action, and news of a deadly virus in China.
Wednesday 22 January, 2020
Daily Currency UpdateCAD - Canadian DollarThe Loonie falls versus G8 currencies following adverse crude oil price action and a fall of manufacturing sales data. Crude oil falls despite the suspension of exports from Libya and following global equity weakness on political and economic worries in Asia. Market participants are still waiting for crucial economic news tomorrow. However, this morning, manufacturing sales came in at -0.6 percent versus -0.5 percent. According to the monthly survey of manufacturing for November 2019, manufacturing sales declined 0.6 percent to $57.0 billion in November, the third consecutive monthly decrease. Sales were down in 11 of 21 industries, representing 55 percent of total manufacturing sales. The Loonie falls 0.12, 0.25, 0.58, and 0.04 percent versus the Greenback, Euro, Pound, and Aussie dollar, respectively. As a flight to safety measure, market participants sold the Loonie after the news of intensification of a deadly virus originating in central China.
Key MoversYesterday was a different world for the FX market; the Euro and Pound were getting hammered without much news, as it was Martin Luther King Day in the U.S. However, a French diplomat said that French President Emmanuel Macron and U.S. President Donald Trump agreed to a truce in their dispute over digital taxes where neither side will set tariffs this year. This was the first spark that boosted the EUR crosses to go higher, and the Pound followed with positive momentum yesterday afternoon. The party continued for the Euro and the Pound in overnight trading in Europe. The Euro increased versus the U.S dollar after German ZEW January investor expectations came at 26.7, beating an estimate of a 15.0. At the same time, the U.K. released the jobless rate, which held the four-decade low of 3.8 percent, while the number of people in work in the U.K. rose by 208,000, which is the most in almost a year and double the market forecast.
- USD/CAD: 1.3033 - 1.3065 ▲
- EUR/CAD: 1.4496 - 1.4530 ▲
- GBP/CAD: 1.7005 - 1.7079 ▲
- AUD/CAD: 0.8949 - 0.9000 ▼
- NZD/CAD: 0.8602 - 0.8650 ▲