USD/CAD trades on a weaker note above the mid-1.3400s, US PPI data looms

USD/CAD trades in negative territory for the third consecutive day near 1.3461. 
US Retail Sales declined in January, weaker than expected. 
The Canadian employment data suggests the BoC might push back their expectation of rate cuts to June from April.
The US January Producer Price Index (PPI) will be the highlight on Friday.

The USD/CAD pair remains under selling pressure above the mid-1.3400s during the early Asian trading hours on Friday. A rise in oil prices provides some support to the commodity-linked Loonie and weighs on the pair. Investors await the US January Producer Price Index (PPI) on Friday for fresh impetus, which is projected to show an increase of 0.1% MoM and 0.6% YoY. The pair currently trades around 1.3461, losing 0.05% on the day. 

Data released from the US Census Bureau on Thursday reported that US Retail Sales fell 0.8% MoM in January from a 0.4% rise in December, weaker than the estimation of a 0.1% decline. Meanwhile, the Retail Sales Control Group arrived at -0.4% MoM versus 0.6% prior. Financial markets believe that weaker US Retail Sales might convince the Federal Reserve (Fed) to cut interest rates sooner, which weighs on the US Dollar (USD) and creates a headwind for the USD/CAD pair. 

The Canadian employment data suggests that the Bank of Canada (BoC) might push back its expectation of rate cuts to June from April. The BoC Governor Tiff Macklem has not yet been indicated about the timeline for interest rate cuts, but he said that the Canadian central bank has shifted from debating whether interest rates are high enough, to how long the central bank needs to keep rates at current levels. Meanwhile, the higher oil price continues to lift the Canadian Dollar (CAD) as Canada is the largest oil exporter to the United States. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/usd-cad-trades-on-a-weaker-note-above-the-mid-13400s-us-ppi-data-looms-202402152350