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USD/CAD Drops to 1-Week Lows After U.S., Canadian Data

12/22/2017, 3:38:14 PMTrading Strategies
USD/CAD Drops to 1-Week Lows After U.S., Canadian Data

The U.S. dollar drops to one-week lows against its Canadian counterpart on Thursday, after the release of mostly downbeat U.S. data and much more positive economic reports from Canada.

Trading volumes were expected to become more and more thin throughout the week, ahead of the Christmas holiday.

USD/CAD was down 0.66% at 1.2748 by 09:30 a.m. ET (13:30 GMT).

Statistics Canada reported on Thursday that retail sales increased by 1.5% in October, beating expectations for a 0.3% rise.

Core retail sales, excluding automobiles gained 0.8%, surpassing expectations for a 0.4% gain.

Data also showed that consumer price inflation gained 0.3% in November, more than the expected 0.2% uptick.

In the U.S., the Department of Labor reported on Thursday that initial jobless claims rose to 245,000 in the week ending December 15. Analysts had expected jobless claims to rise to only 231,000 last week.

A separate report showed that the U.S. economy showed grew 3.2% in the third quarter, revised down from the previous reading of a 3.3% growth rate.

On a more positive note, the Federal Reserve Bank of Philadelphia said that its manufacturing index rose unexpectedly to 26.2 this month from November's reading of 22.7.

The greenback showed little reaction after the House of Representatives gave final approval on Wednesday to the biggest U.S. tax overhaul in 30 years, marking a major political victory for President Donald Trump.

The loonie was higher against the euro, with EUR/CAD dropping 0.75% to 1.5120