USD/CAD remained within a narrow trading range on Thursday, confined to the mid 1.30’s. The Canadian dollar weakened slightly versus the US dollar, closing at US$1.3042. The pair is holding steady in early trade on Friday. Across the week so far, the Canadian dollar is just 0.1% higher against the dollar.
The US dollar trended northwards versus its peers in the previous session, as investors digested encouraging US retail sales figures. According to the US Commerce Department US retail sales increased for the third straight month in December, climbing 0.3% compared to the month earlier. Retail sales for November were also revised higher from 0.2% to 0.3%.
The data is supportive of the view that the US economy maintained a reasonable level of growth heading towards the end of the year. With job creation solid, wages growth at 2.9% and consumer confidence at the highest level since May (according to the Michigan report) households were content spending across the December. This is important for the US economy which is principally consumer driven.
Today investors will continue to look towards the US economic calendar with the release of US industrial production figures, housing starts and consumer confidence data.
Canadian Labour Market Ends 2019 On Solid Note
The Canadian dollar was little changed on Thursday, even after Canadian employment data showed the sixth straight month of domestic job gains. 46,200 jobs were created in December according to ADP Canada National Employment Report, November’s figure was revised downwards to 27,600 from 30,900. The year finished on a firm footing as far as the Canadian labour market is concerned.
There is no high impacting Canadian data due for release until Wednesday next week when the Canadian inflation report will be released. The Bank of Canada is due to hold its first monetary policy meeting of 2020 the same day.
The BoC is not expected to alter interest rates which are currently at 1.75%. However, analysts are expecting a more dovish than hawkish stance from the central bank