Mar 16, 2021 17:11 GMTFXStreet News
USD/CAD has gradually slid back from session highs at 1.2500 to under 1.2450 in recent trade.
The pair continues to trade within this week’s ranges, however, with key events looming later in the week.
It’s been a subdued session thus far for USD/CAD. The loonie has largely shrugged off the typically mildly negative impact of lower crude oil prices, with the pair gradually edging lower and recently crossing beneath 1.2450, having rejected the 1.2500 level early on during Tuesday’s European session. Monday’s multi-year lows at just under 1.2440 remain the target for the bears and, beyond that, a longer-term move back towards 2018 lows in around the 1.2250 mark. At present, the pair trades flat on the day.
USD/CAD posted strong gains on Friday but was almost unchanged over the week. The upcoming week has three events, including GDP.
Canada’s inflation rate slowed to 0.1% in November, down from 0.4%. The core reading ticked lower to 1.7%, down from 1.8%. ADP Non-Farm Employment Change showed a small gain of 40.8 thousand in November, marking the first gain since July. Retail sales slowed significantly in October. Headline retail sales fell from 1.1% to 0.4%, while the core reading fell from 1.0% to 0.0%.
In the US, headline and core inflation both rose slightly, from 0.0% to 0.2%. PPI was also weak, with the headlined and core releases coming in at a negligible 0.1%. Unemployment claims surged to 853 thousand last week, up from 712 thousand. This points to weakness in the labor market, as the economy continues to struggle. The week wrapped up on a positive note, as UoM Consumer Sentiment improved to 81.4 in December, up from 77.0 beforehand.