“The strength of Canada’s stunning December labour report relative to that produced by the US is a shining example of why the greenback has been failing to gain traction in recent weeks,” Rabobank analysts note. Key quotes The US economic cycle may be more progressed than in other G10 nations, but the markets have recently been coming accustomed to the notion that when it comes to less accommodative monetary policy, the Fed is no longer the only game in town. Today’s US jobs data have done little to dispel scepticism about the Fed’s ability to follow-through with the three rate hikes in 2018 that are implied in its dot plot. By contrast the Canadian markets are awash with speculation as to how soon the BoC will follow last year’s 50 bps of rate increases. Meanwhile, strong Eurozone economic data have set in motion a lively debate about when the ECB will withdraw from it QE programme. Indeed, 2018 could bring tighter monetary conditions from the majority of G10 central banks. The Riksbank last month announced an end to its QE programme and looks set to hike rates in 2018. The BoE is also expected to tighten policy again this year and the RBA, RBNZ and the Norges Bank could all follow suit in 2018. This could leave the USD struggling to win back momentum vs. many of the major currencies.