There’s been so much to keep the foreign exchange market busy over the past few days that the Canadian Dollar has largely been overlooked. For most of Wednesday, USD/CAD was trapped in a very narrow range
even as oil prices fell quite sharply during the North American morning. With the US Dollar in a broad-based sell-off after the FOMC, USD/CAD fell 70 pips to 1.2800 but this was very much about the ‘Big Dollar’ rather than its Canadian cousin. Overnight in Asia and the London morning, the fall in USD/CAD has been largely reversed.
Canada’s official statisticians yesterday released their always-fascinating annual survey of household spending. In 2016, households spent an annual average of $62,183 on goods and services ranging from clothing to communications; up 2.8% from 2015. Despite the overall increase in 2016, households still spent the same proportion of their total consumption on the three largest expenditure categories as they did in 2015: shelter (29.0%), transportation (19.2%) and food (14.1%).
Canadian households spent an average of $18,032 on shelter in 2016, little changed from 2015. They paid an average of $16,293 for their principal residence (including rent, mortgage payments, repairs and maintenance costs, property taxes and utilities) and an average of $1,739 for other accommodations, such as owned secondary residences and hotels.
On transportation, Canadian households spent an average of $11,909 in 2016, almost the same as 2015. On average, Canadian households spent $8,784 on food, also little changed from 2015. They spent an average of $6,176 on food purchased from stores, and an average of $2,608 on food purchased from restaurants.
Today we’ll find out from BoC Governor what it is that keeps him awake at night when he speaks at an event in Toronto. Ahead of this, USD/CAD opens in North America this morning at 1.2820 with GBP/CAD at 1.7215.