The US dollar decline of the last couple of months has stalled, at least for this week. This morning the US dollar is up 0.8% against a basket of currencies and up 0.3% against the Canadian dollar. For the week, the US dollar is flat against CAD. Today’s relative strength in the US dollar against peers is related to data out of Germany showing the services sector activity slowing down more than expected. In Canada, the perceived aversion of the fiscal cliff and retail data showing that we are already recovering to pre-pandemic levels have helped hold up the Canadian dollar better against the US currency despite the fact that oil and gold are both down this morning.
