Canadian dollar back to familiar levels amid focus on significant data

The Canadian dollar is trading at relatively stable levels, with broad-market flows leading the way in the latter part of the trading week. Although the Canadian currency has generally appreciated this week, it is still weaker than the US dollar, which has outperformed since Monday’s opening bids.

Canada will see Retail Sales figures from November on Friday, followed by the US Consumer Sentiment Index from the University of Michigan. Markets continue to digest an updated rate-cut outlook as investors weigh a strong economic outlook from the US.

US Initial Jobless Claims printed at 187K for the week ended January 12, below the forecast of 207K and dropping away from the previous week’s 202K.

Housing Starts and Building Permits outpaced expectations, with housing starts adding 1.46 million new units to the national housing supply and building permits climbing above forecasts.

Fed officials continue to caution the need for slow progress as odds of a March rate cut evaporate. The Canadian dollar is bolstered by declines in the Euro and the Swiss Franc, up around 0.25% and 0.4%, respectively.

The Canadian dollar is relatively flat across the rest of the major currency board, within a fifth of a percent of the US Dollar, Pound Sterling, Australian Dollar, and Japanese Yen.