Trade has been relatively quiet today, with US markets closed for the Thanksgiving holiday. However, in the Forex market there has been a measure of risk appetite. The Canadian dollar does not seem to be benefitting from that appetite, though, thanks to latest retail sales data.
Economists had expected Canadian retail sales for September to grow by 0.5 per cent. Instead, they only grew by 0.1 per cent. This discrepancy is weighing on the loonie, particularly against the US dollar. Even the fact that oil prices are inching higher aren’t having the same impact.
For now, Canadian dollar is struggling a bit. However, even with the struggles, the loonie is still considered a solid currency. The strength the currency has shown over the last few years is prompting the IMF to consider classifying the Canadian dollar as a reserve currency, and many think that the loonie is a de facto global currency — even without official proclamations to that effect.
For now, though, the Canadian dollar is struggling, and it will take some greater volume — and some even better risk appetite — to change things up.
At 14:01 GMT USD/CAD is up to 0.9975 from the open at 0.9963. GBP/CAD is up to 1.5905 from the open at 1.5893. EUR/CAD is up to 1.2854 from the open at 1.2806.
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