FX Action: USD-CAD has retreated toward
FX Action: USD-CAD has retreated toward 1.2850 after yesterday capping out a four straight day run higher at 1.2909, which was a one-month peak. The recent stalling out in the oil price rally helped give the pairing an underpinning in recent sessions. BoC policymaker guidance have also over the last month or so been emphasizing that there is no rush to continue with its gradual tightening cycle. Key Canadian data is due today. November employment has us expecting a rise of 20.0k after the the 35.3k gain in October, but wage growth is likely to continue to point to slack still remains in the labour market. Analysts expect average weekly earnings to rise 2.5% y/y after 2.4%. While Earnings have picked up from a 0.7% y/y pace in April, they remain short of the 3% or better pace the BoC is seeking. Q3 GDP is also due today, where analysts expect a slowing to 1.6% q/q (adjusted) growth from the 4.5% in Q2, which would mildly undershoot the BoC's estimate of 1.8%. Data in-line with our expectations would by mildly bullish for USD-CAD. USD-CAD has support at 1.2805-08, and resistance at 1.2920.