• Canadian Dollar churns within near-term ranges.
• Canada sees an empty data docket for Thursday.
• Friday to wrap up the week with Canadian Retail Sales, US Michigan Consumer Sentiment.

The Canadian Dollar (CAD) pivots around familiar levels on Thursday as broad-market flows take the driver’s seat in the back half of the trading week. The Canadian Dollar is broadly higher on the week but is still down against the outperforming US Dollar (USD) from Monday’s opening bids.

Canada will see Retail Sales figures from November on Friday, to be closely followed by the US Consumer Sentiment Index from the University of Michigan. 

Daily digest market movers: Canadian Dollar trades into the middle on Thursday

• Markets continue to digest an updated rate-cut outlook as investors weigh a stubbornly strong economic outlook from the US.
• US Initial Jobless Claims printed at 187K for the week ended January 12, below the forecast of 207K and dropping away from the previous week’s 202K (revised down from 203K).
• Revisions continue to plague US data, but WoW Unemployment Claims see only minor adjustments for the time being.
• US Housing Starts also outpaced expectations,  falling less than expected, and Building Permits climbing above forecasts.
• US Housing Starts added 1.46 million new units to the national housing supply, falling from the previous period’s 1.525 million (revised from 1.56 million), but falling less than the forecast 1.4265 million.
• US Building Permits climbed to 1.495 million in December, up from the previous month’s 1.467 million and above the forecast of 1.48 million.
• Markets continue to roil as investor bets of faster, deeper rate cuts from the Federal Reserve (Fed) run into the hard wall of a sturdier-than-expected US economy and uneven inflation declines.
• Fed officials continue to caution the need for slow progress as odds of a March rate cut evaporate