US Retail Sales Boost Canadian Dollar

The positive retail sales report from the United States boosted not only the US dollar, but the Canadian dollar as well. The loonie managed to outperform most of the major currencies. US retail sales rose 0.1 percent in April from March when they fell 0.5 percent. It was a nice surprise to market participants, who have expected a drop by 0.3 percent. The USA is Canada’s major trading partner, therefore good US fundamentals are favorable for the Canadian currency.
The loonie’s rally was not big though as futures for crude oil, the biggest Canadian export, fell. Crude dropped 1.1 percent to $95.01 per barrel in New York today. USD/CAD went down from 1.0115 to 1.0101 as of 23:51 GMT today. EUR/CAD was little changed at 1.3115 after falling to 1.3067. CAD/JPY was up from 100.44 to 100.63. If you have any questions, comments or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.