The Canadian dollar rose today as May’s retail sales beat forecasts, giving hope that the nation’s economy will continue to improve and policy makers will raise interest rates eventually.
Just one important report from Canada was scheduled for this week and it came out very positive. Retail sales were up 1.9 percent in May, compared to the forecast of 0.4 percent. Core sales (retail sales excluding automobiles) edged up 1.2 percent, beating the analysts’ expectation of 0.1 percent growth.
Some economists were reluctant to be bullish on the Canadian currency (often nicknamed loonie), saying that it may face resistance. So far, the loonie managed to rally for four straight sessions against it US counterpart and does not look like willing to stop.
USD/CAD fell from 1.0331 to 1.0291 as of 22:30 GMT today. EUR/CAD declined from 1.3620 to 1.3604 and CAD/JPY ticked up from 96.39 to 96.69.
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