USD/CAD retreats from 1.3350 on weak US Q3 GDP, stable Canadian Retail Sales data

The USD/CAD pair falls back after failing to climb above the immediate resistance of 1.3350 in the early New York session. The Loonie asset faces selling pressure as weaker-than-anticipated final reading of Q3 Gross Domestic Product (GDP) has weighed heavily on the US Dollar.

The United States Bureau of Economic Analysis (BEA) reported in its final report that the economy grew at a slower pace of 4.9% against expectations of 5.2%. The appeal for the US Dollar is downbeat as investors are hoping that Federal Reserve (Fed) policymakers would unwind restrictive monetary policy stance sooner than earlier anticipated.

Meanwhile, the Department of Labor has reported lower Initial Jobless Claims (IJC) for the week ending December 15. Individuals claiming jobless benefits were 205K, which were slightly higher than the former reading of 203K but lower than the consensus of 215K.

Considering overnight futures, the S&P500 is expected to open on a positive note, indicating an upbeat market mood.

While investors are betting big on early rate cuts, Philadelphia Fed Bank President Patrick Harker said rate cuts will take time but showed his openness to lowering interest rates. He further added that one major reason to cut interest rates next year is that businesses are struggling to augment higher interest obligations.

On the Canadian Dollar front, Statistics Canada has reported mixed monthly Retail Sales data for November. Consumer spending grew by 0.7%, missed expectations of 0.8% but outperformed prior reading of 0.5%. Retail Sales excluding autos rose by 0.6%, outperformed expectations of 0.5%.