Demand for Loonie Has Grown Significantly. We Are Waiting for Important Economic Reports

Demand for the Canadian dollar has grown significantly. During yesterday's trading, the USD/CAD currency pair fell by more than 120 points. This is due to the publication of positive economic reports. In November, the consumer price index of Canada was 0.3%, which is higher than the market expectations of 0.2%. In October, retail sales in the country increased by 1.5%. Experts expected the figure of 0.3%. The USD/CAD currency pair has the potential to further decrease.

The United States published mixed economic reports. In the third quarter, the country's economy grew by 3.2%. Economists predicted the figure at 3.3%. Over the past week, the number of initial jobless claims increased by 20,000 to 245,000. At the same time, the index of manufacturing activity from the Philadelphia Federal Reserve Bank (December) increased by 15.4% to 26.2. The single currency is under pressure due to the victory of supporters of Catalonia's independence in the elections. Today, the focus will be on economic reports from the United Kingdom, the United States, and Canada. We also recommend you to keep current information on the tax reform in the US.

The oil quotes are consolidating. At the moment, futures for the WTI crude oil are being traded in the range of $58.00-$58.25 per barrel. Investors expect data on the number of drilling rigs from Baker Hughes at 20:00 (GMT+2:00).

Market Indicators

Yesterday, the major US stock indices closed in the positive zone: #SPY (0.21%), #DIA (0.24%), #QQQ (+0.01%).

The 10-year US government bonds yield is testing local highs. At the moment, the indicator is at the level of 2.48-2.49%.

The news feed on 2017.12.22:

- The UK GDP report at 11:30 (GMT+2:00);
- Statistics on personal income and spending in the US at 15:30 (GMT+2:00);
- A report on orders for durable goods in the US at 15:30 (GMT+2:00);
- The GDP data of Canada at 15:30 (GMT+2:00);
- Sales of new housing in the US at 17:00 (GMT+2:00).

by JustForex, 2017.12.22

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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