The Canadian dollar slumped against the euro yesterday as comments of European Central Bank President Mario Draghi boosted the shared European currency, while US retail sales were below forecast. Canada’s currency was flat against the US dollar.
US retail sales (seasonally adjusted) rose just barely by 0.1 percent in December, according to an advance estimate, following the 0.4 percent growth in November. The median forecast was 0.3 percent. Jobless claims unexpectedly climbed from 375,000 to 399,000 in the week ending January 7.
The United States is the major trading partner of Canada, making problems of the USA bearish for the Canadian currency, while being bullish for the euro. Additionally, the euro outperformed its major peers, including CAD, as the statement of Draghi after the ECB monetary policy meeting was less dovish than was expected by market participants.
USD/CAD was near its opening level of 1.0189 as of 1:19 GMT today. EUR/CAD jumped from 1.2948 to 1.3055 yesterday and traded at about 1.3050 today. AUD/CAD advanced from 1.0508 to 1.0528 yesterday, but backed off to 1.0516 today.
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