Canada CAD

Canada Foreign Securities Purchases by Canadians

Impact:
Low

Latest Release:

Date:
Actual:
C$-3.15B
Forecast:
Previous/Revision:
C$3.77B
Period: Jan
What Does It Measure?
Canada's Foreign Securities Purchases by Canadians measures the net purchases of foreign securities by Canadian residents, reflecting investment trends and international capital flows. It focuses primarily on the purchasing behavior of Canadian investors in foreign stock, bond, and money market instruments, providing insights into the outward investment sentiment and portfolio diversification strategies of Canadians.
Frequency
This report is released on a monthly basis, typically published on the third or fourth business day of the month following the reporting period, and provides a preliminary estimate that may be revised in subsequent reports.
Why Do Traders Care?
Traders monitor this indicator because significant increases in foreign investments may signal rising confidence among Canadian investors in international markets, potentially affecting CAD and the domestic stock market. Lower or declining figures can indicate a shift in investor sentiment and may result in bearish movements for the Canadian dollar and equities.
What Is It Derived From?
The data for foreign securities purchases is derived from balance of payments accounts, which compile statistics from various sources, including financial institutions and administrative records. The collection method involves tracking transactions related to foreign securities made by resident individuals and institutions, ensuring accuracy through established reporting guidelines.
Description
The report distinguishes between preliminary and final estimates, with preliminary data reflecting early assessments subject to future revisions, while final reports are based on more comprehensive data and provide greater accuracy. The reporting typically utilizes a Year-over-Year (YoY) comparison, which helps in identifying long-term trends in investment behavior by accounting for fluctuations in seasonal data.
Additional Notes
This indicator is considered a leading economic measure, as it often anticipates trends in capital flows and investment patterns before they influence economic growth. Comparing foreign securities purchases with domestic investment can provide insights into overall economic health, illustrating shifts between local and international investment preferences.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for CAD, Bullish for Stocks. Lower than expected: Bearish for CAD, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
C$-3.15B
C$3.77B
C$3.77B
C$17.65B
C$17.85B
C$-2.65B