With US retail sales positively exceeding economists’ forecasts for a 0.3 per cent drop, the currency of Canada was bolstered.
The Canadian Dollar Exchange Rate was in the region of 0.9910 against the US Dollar as of 14:35 GMT
The ‘Loonie’ posted gains against the majority of its rivals after advance US retail sales revealed an unexpected gain of 0.1 per cent. This result followed a 0.5 per cent decline in March which was negatively revised from 0.4 per cent. Year on year, retail sales were 3.7 per cent higher than the same period of 2012.
Of the thirteen categories of retail sales nine advanced, largely due to consumers garnering support from lower fuel costs, rising home values, and steady improvements in the labour market.
After the US report was released Sherry Lang of TJX Cos remarked that this month is ‘off to a strong start. It was nice to see strength in apparel as well as home categories across the board.’
Similarly, senior economist Jenifer Lee asserted: ‘Consumer spending looks to have started the second quarter off on a solid note.’
As the US is Canada’s main trading partner the better-than-expected result helps to improve the latter nation’s economic outlook.
In response to the data and the Canadian Dollar’s movement one Canadian macro-strategist commented: ‘What’s good for the US is generally good for Canada, so in that regard the Canadian Dollar will react accordingly. Our bias is still towards a weaker Canadian Dollar because our expectation over the medium-term is that growth in the US will be much more robust than it will be in Canada. But, for the day at hand, a positive day for the Canadian Dollar.’
And with crude oil prices slipping for a third day the ‘Loonie’ was also able to strengthen against fellow commodity driven currencies, the ‘Aussie’ and ‘Kiwi’. Futures on Canada’s main export, crude oil, edged down by 0.7 per cent during the European session.
Wednesday’s Canadian existing home sales figure, due out on Wednesday, and Friday’s Canadian CPI are the pieces of domestic data to watch out for this week.
Current Canadian Dollar (CAD) Exchange Rates
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9910 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7637 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6450 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9926 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1781 <
(Correct as of 14:35 GMT)
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