Canadian Dollar Weakens on Lackluster Data; Oil and Stock Markets Improve After Weeks in Decline
Published February 16, 2018
The US dollar is near three week lows this morning as US government deficit worries are leading the greenback to its lowest level since 2014; despite this, USD/CAD is moving higher as weak economic out of Canada continues to weigh heavily on the loonie.
Month-on-month Canadian manufacturing sales declined by -0.3% versus an expected growth level of 0.2%; lower sales in the petroleum, coal, and food industries were the leading factors in this decline.
Canadian foreign securities purchases (the total value of Canadian stocks, bonds and market assets purchased by non-Canadian investors) also came in much lower than expected; a reading of -1.97 billion indicated that foreign investors sold off Canadian assets, completely missing the expected purchase of 19.18 billion.
The US residential sector remains strong as data on US building permits beat expectations with a reading of 1.40 million; US housing starts also came in strong with a reading of 1.33 million.
Global stocks are set to record their best week of gains in nearly six years as the market continues to recover; US stocks posted their best 5-day run since 2011 as equities regain their strength despite improving bond yields
Oil prices are also recording solid gains as the commodity is set to gain 4% this week; a weaker US dollar and reports that OPEC and Russia may seek a long-term alliance are helping prices rise.