Thursday left the Canadian Dollar relatively unchanged as it was unable to add to the week’s gains. A report on the wholesale trade showed a larger decrease than was expected. With CAD previously rallying on shock inflation figures, the wholesale figures dampened the spirits of CAD investors. However, separate jobs data showed that Canada’s labour market may be heading in a positive direction as over 30k new jobs were created last month.
Wholesale Trade Data Disappoints but Jobs Figures Look Promising
With the release of the wholesale data on Thursday, the report evidenced that the trade had declined by 1.1% in October from September. This data came from weaker sales in the machinery, equipment and supplies subsector, alongside agricultural supplies. This figure came as a shock as analysts were only expecting a 0.1% decrease. With this news, CAD dropped as confidence followed. On the other hand, separate data from payroll services provider ADP showcased that Canada had successfully added 30,900 jobs in the month of November, which now puts Canada on its fifth straight month of gains.
CAD roundup and outlook for upcoming days
Yesterday saw the Canadian Dollar trading around an unchanged level of 1.3113 to the USD, which was higher than the previous weekly high of Wednesday at 1.3103. Furthermore, the Canadian government bond prices fell slightly across the yield curve, with the 10-year dropping 12 Canadian cents to yield 1.705%. This 10-year yield reached its highest intraday level since May at 1.736%. As the week draws to a close, the Canadian Dollar was up 0.4% which was boosted by the recent pick-up in Canadian inflation data and the deal being struck between the United States and China. The deal in particular was a positive move for Canada as it is a major producer of commodities which means that its economy could benefit from an improved global outlook in trade.
Looking ahead to todays data releases, the retail sales report for October is due to be released later today. The contents within the report are expected to help guide the Bank of Canada in its interest rate outlooks. Investors will be keen to see what the figures report for the retail sales and how this might influence the Central Bank’s decisions going forward. Recent positive developments to the Canadian economy have suggested that the BoC may be in a good place in regards to its economy and thus may not need to cut rates unlike other major competitors going into 2020.
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