Stock markets hailed the improving geopolitical climate and solid U.S. job performance on Friday. The Nasdaq gained 1.79% to reach a record high, while the S&P rose close to 1.7%.
The U.S. dollar lost ground on Friday, despite the job market’s impressive gain of 313,000 new positions in February, the strongest growth in 17 months. The slide in the greenback was due to low wage growth, which will increase the U.S. Federal Reserve’s (Fed) leeway to gradually raise interest rates.
The CAD/USD ended last week on a positive note thanks to the sound reading from the country’s job market, among other factors. Moreover, the tightening job market is well illustrated by hourly wages, which remain close to a high unmatched in two years.
The economic agenda in Canada this week is somewhat sparse. However, in the United States, we’ll be keeping an eye on important inflation indicators as measured by the Consumer Price Index and Retail Sales on Wednesday.
Mark Donohue
Range of the day: 1.2775 – 1.2890