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USD Spikes on Hawkish Fed and Disappointing Canadian Retail Data
Published February 22, 2018
The US dollar jumped up this morning, supported by renewed optimism that the Fed will raise interest rates more quickly than was expected before yesterday’s release of January’s Federal Reserve meeting minutes.
USD/CAD was also pushed higher due to Canadian retail sales missing expectations, with headline retail sales contracting 0.8% and core sales dropping 1.8%, month-over-month.
US initial jobless claims beat estimates, which was another contributing factor to upside USD pressure and an increasing CAD selling bias.
The roster today includes New York Fed President William Dudley speaking about Puerto Rico and the Virgin Islands, followed by Atlanta Fed President Raphael Bostic on economic outlook, finishing with Dallas Fed President Rob Kaplan speaking in Vancouver on trade.
Oil prices are up this morning ahead of inventory data being released later today, perhaps on the back of last week’s US inventory decline of 0.9 million barrels. WTI crude is up 0.32% to $61.88 with Brent crude up 0.32% to $65.63, at the time of writing.