The Canadian dollar is steady on Friday, as USD/CAD trades in the mid-1.12 range. We could see some volatility from the pair, with a host of key events on the schedule. Canada releases Core CPI and CPI. In the US, it’s another busy day, with the release of Building Permits and the UoM Consumer Sentiment. As well, Federal Reserve Chair Janet Yellen will deliver remarks at an event in Boston.
Canadian manufacturing data was a big disappointment, as Manufacturing Sales tumbled 3.3%, well of the estimate of -1.6%. This marked the key indicator’s biggest drop in over five years. The Canadian dollar did soften after the release, and was fortunate to close the day almost unchanged. Elsewhere, Foreign Securities Purchases posted a strong reading of 10.3 billion C$, easily exceeding the estimate of 4.31 billion.
Earlier in the week, US retail sales and inflation numbers sagged. Core Retail Sales dipped 0.2%, its first decline since April 2013. It was a similar story with Core Retail Sales, which posted a decline of 0.3%, its first loss since January. This points to a decrease in consumer spending, a key component of economic growth. Meanwhile, PPI fell by 0.1%, after a reading of 0.0% a month earlier. All three events missed their estimates.
There was better news on Thursday, as US Unemployment Claims dropped to 264 thousand, marking a 14 -year low. The estimate stood at 286 thousand. Manufacturing numbers were a mix, as Industrial Production gained 1.0%, its best showing since November. The Philly Fed Manufacturing Index dipped to 20.7 points, but this beat the estimate of 19.9 points.
USD/CAD 1.1232 H: 1.1267 L: 1.1228
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