News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • The price of Brent crude oil continues to soar, touching highs last seen three years ago as demand outstrips supply. Get your #crudeoil market update from @nickcawley1 here:
  • Heads Up:💶 ECB Panetta Speech due at 13:45 GMT (15min)
  • $USD fresh 2021 high didn't get much traction on the first test above resistance, but it's been quite the move since last week. Friday should be a big day for the USD - PCE, ISM and Sentiment numbers
  • Gold and silver not having a good day so far, rising US Treasury yields is a headwind for precious metals and non-interest bearing assets in general #trading $XAUUSD $XAGUSD
  • there it is $USDJPY up for a test of the 2021 high fibo level at 111.61, next major level at 112.50 this zone has held the highs in 2019, 2020 and so far in 2021
  • ...let's see how far the brinkmanship goes and whether the rating agencies feel a rating downgrade is necessary for the constant pressure on its finances
  • - Financial markets have brought forward prospects for BoE tightening into 2022, this is not supportive for inflation surge
  • Treasury Secretary Yellen will no doubt be touching on this at today's Senate Finance Committee meeting, but she has sent a formal letter to Congress to say the US will likely hit its debt ceiling by October 18th
  • US likely to hit debt ceiling by October 18th - Treasury Secretary Yellen
Forex: US Consumer Income Grew By the Most in Eight Years; USD/CAD Bullish

Forex: US Consumer Income Grew By the Most in Eight Years; USD/CAD Bullish

Renee Mu, Currency Analyst

THE TAKEAWAY: [US Consumer Income surged by the most in eight years; Canadian economic grew more than expected in November] > [Wages and salaries for Americans increased before payroll tax raise; Most major industrial sectors gains in Canada.] > [USD/CAD Bullish]

Consumer Income in the US rose by 2.6 percent in December, the most gain since December 2004 as wages and salaries for Americans continue to grow according to a report released by Commerce Department today. The reading exceeds median forecast from a survey of economists pulled by Bloomberg News that called for an increase of only 0.8 percent. In specific, disposal income increased 2.8 percent, the biggest since May 2008. As a consequence, Consumer spending climbed by 0.2 percent in December following a rise of 0.4 percent last month.

The surge in consumer income was result from improving wages and salaries for Americans. Some companies also paid dividends and employee bonuses earlier than usual before the raise of tax rates. In the 4Q GDP report released yesterday, personal consumption, increased 2.2 percent and beat the consensus estimate. The better-than expected person income and consumption figures add more signs that the US economy is recovering. The increased payroll tax starting from 2013, however, may hurt consumer confidence to some extent.

According to a report released by Statistics Canada today, the Canadian economy grew at a faster pace than expected in November. Real gross domestic product increased 0.3 percent following a 0.1 percent rise in October. The median forecast of economists polled by Bloomberg News called for a 0.2 percent gain. On a yearly basis, GDP grew 1.3 percent in November, falling short of expectations for an increase of 1.4 percent. Manufacturing and mining, quarrying and oil and gas extraction sectors in Canada all expanded in November, leading to the gain in gross domestic product.

USDCAD 1-minute Chart: January 31, 2013

Forex_US_Consumer_Income_Grew_By_the_Most_in_Eight_Years_USDCAD_Bullish_body_Picture_1.png, Forex: US Consumer Income Grew By the Most in Eight Years; USD/CAD Bullish

Chart created using Market Scope – Prepared by Renee Mu

In the minutes following the release of the reports from US and Canada, the Canadian dollar weakened slightly against the U.S. dollar but then saw retracement to previous level. At the time of this report was written, the loonie traded lower, with the USD/CAD pair trading at C$1.0007.

--- Written by Renee Mu DailyFX Research

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.