In January, foreign portfolio investment in Canadian securities totalled $7.91 billion, falling short of the expected $17.44 billion. This figure indicates a notable decrease in investment activity.
The Australian Dollar (AUD/USD) approached the resistance level at 0.6400 as the US Dollar weakened and hopes for Chinese stimulus grew. Meanwhile, EUR/USD traded near 1.0950 due to selling pressure on the Greenback and political improvements in Germany.
Gold Prices And Tokenized Assets
Gold prices hovered around $3,000 per troy ounce, supported by a decline in the US Dollar and fluctuating US yields. Additionally, tokenized-Gold assets reached a market cap of $1.8 billion following the surge in gold prices, suggesting potential gains in crypto markets.
Canada’s foreign portfolio investment in January was well below expectations, ending at $7.91 billion instead of the projected $17.44 billion. That drop signals lower-than-anticipated interest from international investors. A slowdown of this magnitude is not an isolated event—it suggests that global investors may be re-evaluating their appetite for exposure to the country’s markets. If this trend persists, we could see pressure on domestic assets that have previously benefited from sustained foreign inflows.
The Australian Dollar found strength as it neared 0.6400. This move was fuelled by a mix of US Dollar softness and optimism that China could introduce stimulus measures. A rally to that level means investors were positioning on expectations of monetary or fiscal action from Beijing. If there is further clarity on stimulus, the currency could extend gains. On the other hand, if sentiment shifts or US economic data surprises to the upside, renewed selling could emerge.
Euro And Market Sentiment
In Europe, the Euro brushed against 1.0950 as the Dollar struggled. The currency’s strength was linked to lighter selling pressure and recent progress in German politics. Political improvements often reduce uncertainty, providing stability to domestic investments and the currency in tandem. With that in mind, a move above 1.1000 would require further downside in the Dollar or more concrete positive developments within the Euro area.
Gold remained firm near $3,000 per troy ounce, buoyed by a weaker US Dollar and shifting movements in US yields. Precious metals have benefited from recent turbulence in fixed-income markets, with bond investors adjusting expectations. A prolonged rally in gold could see further interest spilling into tokenized-gold assets, which recently hit a $1.8 billion market cap. If this momentum continues, there may be an opportunity for overlapping demand between traditional and digital assets, affecting both physical gold and blockchain-based alternatives.
