Ahead of the publication of Canadian retail sales figures, the ‘Loonie’ gained on its peers. During the North American session the commodity-driven asset was able to extend its advance as sales climbed by more than expected.
The Canadian Dollar Exchange Rate was in the region of 0.6090 against the British Pound as of 14:15 GMT
Economists forecast that the report would show retail sales (excluding autos) gained by 0.6 per cent in July, month-on-month, following a decline of 0.8 per cent in June.
The 0.8 per cent decline was the worst monthly drop for 2013, and before the report was published macro-strategist Mazen Issa asserted; ‘There may be some scope for an upside surprise on the data. We could be in store for a stronger reaction in CAD.’
And sure enough, sales did rebound by more than anticipated, jumping 1.0 per cent from a negatively revised decline of 0.9 per cent.
Sales including autos advanced by 0.6 per cent in July, wiping out June’s month-on-month decline of 0.6 per cent.
In the immediate aftermath of the data’s publication the Canadian Dollar strengthened against the Pound and its US counterpart.
The CAD/GBP exchange rate hit a low of 0.6048
Of the 11 categories which make up the sales figures 8 recorded increases. The improvement in sales was largely the result of a 3.2 per cent surge in petrol station sales, while clothing and accessory purchases increased by 1.9 per cent.
As Canada’s economic growth has been primarily consumer led, due to external demand issues, this development was a positive one – particularly given that the nation is publishing GDP data next week.
The volume of sales was up 0.5 per cent.
While the Canadian Dollar’s advance on the Pound was aided by the British currency broadly declining in reaction to comments issued by Bank of England officials, gains against the US Dollar were limited after the US house price index leapt by 1.0 per cent in July rather than the 0.8 per cent predicted.
If today’s US consumer confidence report also shows improvement, the impact the results could have on the Federal Reserve’s tapering timeline may bolster the US Dollar.
As currency strategist Greg T. Moore notes; ‘Retail sales is typically pretty important for Canada, we might be able to see some more strength in the Canadian Dollar. But the focus this week is still on the Fed, as Fed speakers are essentially slowly clarifying its view.’
Influential Canadian data is a little thin on the ground for the rest of the week, although Friday’s average weekly earnings report will be of interest.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9722 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7217 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6090 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0355 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1626 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6420 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0286 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3856 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8570 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9661 <
(Correct as of 14:15 GMT)
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