Upbeat US data and hawkish comments by Fed’s Williams throw a spanner on Canadian Dollar’s recovery
US Initial Jobless Claims and housing data endorse belief in strong labor market, hot inflationary trends.
USD/CAD pullback is losing steam right above 1.3730 support area.
The Canadian Dollar (CAD) is trading higher for the second consecutive session on Thursday, yet with weaker bullish momentum. Strong US macroeconomic data and hawkish comments from New York Federal Reserve (Fed) President John Williams have provided some support to the USD.
US Initial Jobless Claims remained steady at relatively low levels last week. At the same time, the Philadelphia Fed Manufacturing Survey posted its best reading in a year, adding to the evidence of the strong US economic momentum.
Furthermore, US Existing Home Sales declined in March although their median price jumped 4.8% over the last twelve months, suggesting an inflationary contribution to the Consumer Price Index (CPI). In this context, Fed’s Williams has reiterated the idea that there is no urgency to rate cuts, putting the brakes on Canadian Dollar’s appreciation.
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