Ella 
In Asia on Thursday, USD/CAD broke its winning streak since January 11 and fell to near the important level of 1.3500. The Canadian dollar rose against the U.S. dollar as crude oil prices recovered in the previous session. However, WTI oil prices were trading just below $72.70 a barrel at press time.
Crude oil prices rose on Wednesday, boosted by a monthly report from the Organization of the Petroleum Exporting Countries (OPEC) that suggested a positive outlook for crude oil demand. Oil demand growth is expected to be strong in 2024 and 2025, the report showed.
Canada’s raw materials price index contracted for a second straight month in December, keeping materials inflation at its sharpest contraction since June of the previous year. A report released on Wednesday showed that the raw material price index continued to contract by 4.9%, unchanged from the previous value. In addition, the price of industrial products recorded a monthly rate of -1.5%, higher than the expected value of -0.7% and the previous value of -0.3%.
U.S. bond yields fell, and the U.S. dollar index interrupted its rising streak. The U.S. dollar index fell to around 103.30. As of press time, the 2-year U.S. Treasury yield and the 10-year U.S. Treasury yield were 4.33% and 4.08% respectively.
U.S. retail sales in December (monthly rate) recorded a growth of 0.6%, exceeding the expected value of 0.4% and the previous value of 0.3%. The retail sales control group also improved, rising to 0.8% from 0.5% previously.
Additionally, core retail sales (month-over-month), which excludes the auto and parts sectors, rose 0.4%, beating expectations by 0.2%. Traders are likely to keep a close eye on U.S. housing data due out on Thursday. In Canada, retail sales data will be released on Friday.
