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USD Drops on Disappointing Economic Data, Positive Canadian Retail Sales
Published December 21, 2017
The US dollar, which had been hovering around 2-week lows, dropped this morning after Q3’s economic growth was lowered to 3.2% (from 3.3%). US jobless claims also increased more than expected, and market optimism related to Trump’s tax overhaul seems to be waning.
The Canadian dollar is now much more in focus after this morning’s data release. CPI (both month-over-month and year-over-year) had positive prints, though it was Retail Sales that really knocked everyone’s socks off, coming in at 1.5% versus an expected 0.3%. This had markets very excited, as the Bank of Canada clearly stated its rate decisions are to be very data dependent from here on in, and this is data will be hard for Poloz to ignore, perhaps accelerating the timeline for the next interest rate increase.
Tomorrow’s GDP data and December’s Employment numbers (to be released early January) will be the last 2 pieces of this puzzle…let’s just see what tomorrow brings.
Oil prices are down this morning as concerns about increased output and production persist. WTI crude is down 0.43% to $57.84 with Brent crude down 0.31% to $64.36 at the time of writing.