(MENAFN - Baystreet.ca)
The Canadian dollar is riding the coat-tails of a broad U.S. dollar selloff against the major G-10 currencies. USD/CAD dropped from $1.2744 on Wednesday to $1.2608, despite West Texas Intermediate oil prices plunging 5.7% in the same period.
Canadian dollar traders are also ignoring the negative economic impact from existing coronavirus lockdown measures in Ontario and Quebec and the extremely low numbers (compared to the U.K. and U.S.) of people getting COVID-19 vaccines.
Canada Retail Sales data for December will underscore the economic damage to the economy from the pandemic. December Retail Sales are forecast to drop 2.6% m/m, Statistics Canada s flash estimate. The data is stale, and the news is expected, which suggests Canadian dollar traders will ignore the results.
(MENAFN - DailyFX) Canadian Dollar Talking Points
USD/CAD pares the rebound from the monthly low (1.2610) as it struggles to climb back above the 50-Day SMA (1.2744), and the rebound from the yearly low (1.2589) appears to have been a correction in the broader trend rather than a change in behavior as key market themes remain in place.USD/CAD Rate Rebound Unravels Following Test of 50-Day SMA Advertisement
USD /CAD struggles to retain the advance following the US Retail Sales report even though longer-dated Treasury yields hold above pre-pandemic levels, and the exchange rate may consolidate over the remainder of the week as the Federal Open Market Committee (FOMC) Minutes highlight a wait-and-see approach for monetary policy.