- Statistics Canada
Foreign investors' purchases of Canadian securities unexpectedly fell in June, indicating weak foreign demand for Canada's securities; nevertheless, Canada still remains an attractive destination for non-resident investors. According to Statistics Canada, foreign investment declined by a seasonally adjusted C$1.07 billion in June against expectations for purchases of C$14.68 billion, the first such divestment since January 2014. Foreign investors bought C$21.42 billion worth of Canadian assets in May, marking the largest inflow in two years. At the same time, Canadian investors continued their investment in foreign securities at a moderate pace by adding $2.0 billion to their portfolios in June, the ninth straight month of purchases. Acquisitions were concentrated in foreign equities, with C$2.05 billion being split evenly between American and non-American shares. Meanwhile, Canadians continued to sell foreign debt securities, largely getting rid of U.S. bonds and U.S. commercial papers. The monthly international securities transaction reports offer a gauge on foreign market sentiment toward the Canadian economy.
Following the data release, the Canadian Dollar strengthened versus its American counterpart, with USD/CAD shedding 0.17% to trade at 1.0880.
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