USD/CAD trades lower amid surging oil prices

Key Movers

The US Dollar Index (DXY) declined to trade near 104.207 from its previous day's peak of 104.950. This dip came after the release of US Retail Sales data for January, which showed a contraction of -0.8%, deviating significantly from the anticipated -0.1% and contrasting with the earlier print of 0.4%. Weekly Initial Jobless claims for the week ending on February 10th dropped to 212,000, down by 8,000 from the revised figure of 220,000 the previous week. Chicago Federal Reserve President Austin Goolsbee expressed concern about delaying interest rate cuts, emphasizing the importance of timely action by the central bank.

The EUR/USD pair exhibited bullish trading today, gaining strength to stabilize around 1.0767. European Central Bank (ECB) President Christine Lagarde addressed the topic of potential rate cuts. Lagarde emphasized that although Eurozone data indicated a gradual decline in inflation to target levels, additional evidence, such as wage trends, must be considered as well.

The GBP/USD pair hovered around 1.2585. Today's UK Gross Domestic Product (GDP) data showed a contraction of -0.3% in the fourth quarter of 2023, surpassing market expectations of a -0.1% dip from the previous quarter. Yesterday, Bank of England (BoE) Governor Andrew Bailey stated that recent inflation figures aligned with the central bank's projections, affirming that the bank is on track to achieve its inflation target.