- USD/CAD trades in negative territory for the third consecutive day near 1.3461.
- US Retail Sales declined in January, weaker than expected.
- The Canadian employment data suggests the BoC might push back their expectation of rate cuts to June from April.
- The US January Producer Price Index (PPI) will be the highlight on Friday.
The USD/CAD pair remains under selling pressure above the mid-1.3400s during the early Asian trading hours on Friday. A rise in oil prices provides some support to the commodity-linked Loonie and weighs on the pair. Investors await the US January Producer Price Index (PPI) on Friday for fresh impetus, which is projected to show an increase of 0.1% MoM and 0.6% YoY. The pair currently trades around 1.3461, losing 0.05% on the day.
Data released from the US Census Bureau on Thursday reported that US Retail Sales fell 0.8% MoM in January from a 0.4% rise in December, weaker than the estimation of a 0.1% decline. Meanwhile, the Retail Sales Control Group arrived at -0.4% MoM versus 0.6% prior. Financial markets believe that weaker US Retail Sales might convince the Federal Reserve (Fed) to cut interest rates sooner, which weighs on the US Dollar (USD) and creates a headwind for the USD/CAD pair.
The Canadian employment data suggests that the Bank of Canada (BoC) might push back its expectation of rate cuts to June from April. The BoC Governor Tiff Macklem has not yet been indicated about the timeline for interest rate cuts, but he said that the Canadian central bank has shifted from debating whether interest rates are high enough, to how long the central bank needs to keep rates at current levels. Meanwhile, the higher oil price continues to lift the Canadian Dollar (CAD) as Canada is the largest oil exporter to the United States.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.