Canada CAD

Canada Foreign Securities Purchases by Canadians

Impact:
Low

Latest Release:

Date: Jun 17, 2025 12:30
Actual:
C$4.1B
Forecast:
Previous/Revision:
C$15.63B
Period: Apr

Next Release:

Date: Jul 17, 2025 12:30
Period: May
What Does It Measure?
Canada's Foreign Securities Purchases by Canadians measures the net purchases of foreign financial assets by Canadian residents, indicating the demand for international investment opportunities and trends in outward investment behavior. It primarily assesses cross-border capital flows, reflecting the investment preferences of Canadians and their confidence in foreign markets.
Frequency
This report is released monthly and typically includes both preliminary estimates and final figures, with data for the previous month published approximately 30 days after the month ends.
Why Do Traders Care?
Traders closely monitor this indicator as it provides insight into capital flows that can influence the Canadian dollar (CAD) and the broader financial markets. A higher-than-expected amount of foreign securities purchases may signal strong investor confidence, which could lead to CAD appreciation, while lower figures may indicate capital outflows and economic concerns.
What Is It Derived From?
The Foreign Securities Purchases are derived from extensive surveys conducted by Statistics Canada, gathering data from institutions and individual investors involved in international investments. The compilation involves analyzing reported transactions, capturing the value of purchases of foreign equities, bonds, and other securities by Canadian investors.
Description
The report comprises both the preliminary data based on early estimates of foreign investment flows and finalized figures that present a more accurate representation, typically released later. Preliminary data are often regarded as more volatile, leading to significant market reactions, while final adjustments may refine understanding but usually have less immediate impact.
Additional Notes
This indicator is a leading measure of investment sentiment and economic health, as it reflects Canadians' appetite for risk and potential returns from foreign investments. It complements other economic indicators, such as trade balances and domestic investment rates, offering a broader perspective on Canada’s financial landscape.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for CAD, Bearish for Stocks. Lower than expected: Bearish for CAD, Bullish for Stocks. A dovish tone: Signaling lower interest rates or economic support, is usually good for the CAD but bad for Stocks due to cheaper borrowing costs.

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.