The Canadian Dollar has strengthened against the majority of its most traded peers after the nation’s latest retail sales data beat economists expectations.
Economists had been predicting that retail sales would recover by 0.3% compared to the -1.0% reading posted in January; instead the actual figure came in higher at the better-than-expected level of 0.5%.
The data acts as a direct gauge of consumption and consumer confidence with retail trade being one of the main leading indicators for Canadian economic developments. The increasing number shows that confidence has improved and hints of growth to come.
Today’s data considered the sales for eight categories of retailers, car sales were not included. The sectors covers are food and beverages, furniture and electronics, building supplies, clothing, general merchandise and pharmaceuticals.
The currency has also been bolstered by the disappointing data out of the Eurozone. Investors turned to the Canadian Dollar for a safe-haven as the single currency region posted a weakening picture of its economy.
“Central banks continue to covet Canadian fixed-income product and by extension the Canadian dollar, the economics are stable,” said Jack Spitz, Managing Director of Foreign Exchange at the National Bank of Canada by phone from Toronto. “Some of the issues that had come to the forefront with respect to the weakening trend for the Canadian dollar have now been fully priced into the market.”
Current CAD Exchange Rates
The Euro to Canadian Dollar (EUR/CAD) exchange rate is trading at 1.3186
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate is trading at 1.5502
The US Dollar to Canadian Dollar (USD/CAD) exchange rate is trading at 1.0207
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