{"id":260626,"date":"2026-01-23T23:41:09","date_gmt":"2026-01-23T23:41:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/260626\/"},"modified":"2026-01-23T23:41:09","modified_gmt":"2026-01-23T23:41:09","slug":"usd-cad-drifts-lower-as-canadian-retail-sales-surprise-to-the-upside","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/260626\/","title":{"rendered":"USD\/CAD drifts lower as Canadian Retail Sales surprise to the upside"},"content":{"rendered":"

The Canadian Dollar (CAD) extends gains against the US Dollar (USD) on Friday, supported by a broadly softer Greenback and stronger-than-expected Canadian Retail Sales data. At the time of writing, USD\/CAD<\/a> trades around 1.3767, marking a fifth consecutive daily decline.<\/p>\n

Data released by Statistics Canada showed that Retail Sales rose 1.3% MoM in November, beating market expectations of 1.2% and rebounding sharply from October\u2019s 0.3% decline.<\/p>\n

Retail Sales excluding autos were even stronger, climbing 1.7% on the month, above forecasts of 1.2%, after falling 0.6% in October.<\/p>\n

The rebound in retail activity supports the Bank of Canada\u2019s (BoC) wait-and-see approach after inflation data released earlier this week<\/a> showed easing monthly price pressures, even as annual inflation remains sticky above the BoC\u2019s 2% target. On a yearly basis, CPI accelerated to 2.4% in December from 2.2% in November, while the BoC\u2019s core CPI measure eased slightly to 2.8% from 2.9%.<\/p>\n

Markets widely expect the BoC to keep its policy rate unchanged at 2.25% at next week\u2019s meeting. In its December policy statement, the BoC said that \u2018if inflation and economic activity evolve broadly in line with the October projection, Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment.\u2019<\/p>\n

The central bank also stressed that \u2018uncertainty remains elevated\u2019 and added that if the outlook<\/a> shifts materially, it stands \u2018prepared to respond.\u2019\u201d<\/p>\n

Steady Oil prices add another layer of support to the Loonie, given Canada\u2019s status as a major energy exporter. West Texas Intermediate (WTI) trades around $61 per barrel, up nearly 2.7% on the day.<\/p>\n

Meanwhile, the US Dollar remains under sustained pressure despite some easing in US-EU trade tensions, as President Trump\u2019s protectionist trade agenda and growing interference with the Federal Reserve\u2019s (Fed) independence continue to weigh on investor sentiment.<\/p>\n

Preliminary S&P Global Purchasing Managers Index (PMI) data showed Manufacturing PMI rising to 51.9 in January from 51.8, below expectations of 52.1, while Services PMI came in at 52.5, unchanged from December but below the 52.8 forecast.<\/p>\n

Looking ahead, traders await the release of the University of Michigan Consumer Sentiment survey, along with inflation expectations data. Markets are also widely expecting the Fed<\/a> to keep interest rates<\/a> unchanged at its January 27-28 monetary policy meeting.<\/p>\n","protected":false},"excerpt":{"rendered":"The Canadian Dollar (CAD) extends gains against the US Dollar (USD) on Friday, supported by a broadly softer…\n","protected":false},"author":2,"featured_media":260627,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60],"class_list":{"0":"post-260626","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-ie","11":"tag-ireland"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/260626","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=260626"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/260626\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/260627"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=260626"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=260626"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=260626"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}