Canadian Dollar Rallies on Surging Oil Prices and Retail Sales Data

The Canadian dollar today rallied against its US peer boosted by the global crude oil prices kept rising and were on track to close higher for the week. The USD/CAD currency pair fell for the third consecutive session as the loonie rallied following the release of upbeat Canadian retail sales data for September.
The USD/CAD currency pair today fell from a high of 1.3087 in the early Australian session to a low of 1.3043 in the American market and was headed lower at the time of writing.
The currency pair’s initial decline was fueled by the rising global crude oil prices as tracked by the West Texas Intermediate, which rose to a high of $42.32/bbl today, before giving up some of its gains. The greenback’s overall weakness as tracked by the US Dollar index, which hit a low of 92.20 earlier today also fueled the pair’s decline. The release of the Canadian retail sales report for September, which beat analysts estimates also fueled the loonie’s rally. According to Statistics Canada, the country’s headline retail sales rose 1.1% in October beating consensus estimates of 0.2%. Canada’s core retail sales rose by 1% versus the expected 0.2% increase.
The disappointing Canadian new housing price index for October, which came in at 0.8% versus the expected 1%, could not stop the loonie’s rally despite being released the same time as the retail sales data.
The currency pair’s future performance is likely to be affected by global crude oil prices and US dollar dynamics.
The USD/CAD currency pair was trading at 1.3043 as at 14:39 GMT having fallen from a high of 1.3087. The CAD/JPY currency pair was trading at 79.56, having risen from a low of 79.31.
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