The Canadian Dollar fell to its lowest level in two-months against the US Dollar and weakened against the majority of its most traded peers after data showed that retail sales in the North American country stagnated in March.
According to Statistics Canada, retail sales stalled, remaining unchanged at C$39.5 billion. Economists had been expecting sales to increase by at least 0.1%.
“There is concern about the household sector, not least of which is concerns about the housing market and how rapidly that’s likely to slow,” Adam Cole, the head of Group of 10 currency strategy at Royal Bank of Canada in London, said before the report. “If that starts to fall away, then it’s a reason to make the currency vulnerable.”
Excluding the car sector, sales shrank by 0.2% in March on a month by month basis, following a rise of 0.7% in February.
The cheaper of cost of petrol affected sales from petrol stations which shrank by 1.3%. Other decreases were found in sales from general merchandise stores falling by 0.6% and electronics and appliance stores seeing their sales fall by 0.9%.
Sales were higher in six of the 11 sectors, accounting for 47% of total sales, led by increased spending on clothing, shoes and jewellery with sales in the sector increasing by 3.1%. Sales at motor vehicle and parts dealers were up 0.7% as consumers spent 0.3% more on new cars. Outlays on other vehicles, including recreational vehicles, motorcycles and boats, rose 6.1%.
The next big move for the Canadian Dollar will come at 3-pm when Federal Reserve Chairman Ben Bernanke addresses the US Congress. Bernanke’s testimony, which is due around 3pm GMT, is being hailed as critical for setting a renewed tone in the currency market. Economists are expecting the Fed Chairman to commit to continue with buying bonds in an attempt to boost growth.
Current Canadian Dollar (CAD) Exchange Rates:
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9721
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7514
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6441
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9955
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1944
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5523
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: 1.3307
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8371
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0044
(Correct as of 14:25pm GMT)
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