CAD influenced by US Retail Sales

The Canadian dollar strengthened versus most of its major counterparts as stocks rose and a report showed retail sales increased more than forecast last month in the U.S., the nation’s largest trading partner.

The loonie, as the currency is nicknamed, briefly erased gains versus its U.S. peer as crude oil, the nation’s largest export, fell below $90 a barrel. Canada’s dollar advanced as existing home sales rose 2.5 percent in September from the previous month. U.S. retail sales gained 1.1 percent in September, following a revised 1.2 percent advance the previous month, Commerce Department figures showed today in Washington.

“It’s a strong currency and it remains favored by speculators, even though we’ve seen other risk assets like oil come down,” Adam Button, a currency analyst at forexlive.com in Montreal, said in a phone interview. “If stocks can rebound, the Canadian dollar will rebound right along with it. That’s the main driver now.”

Canada’s currency rose 0.2 percent to 97.83 cents per U.S. dollar at 2:29 p.m. in Toronto. One Canadian dollar buys $1.0222.

The Standard and Poor’s 500 Index gained 0.6 percent. Crude oil futures were little changed at $91.89 a barrel in New York, after reaching as low as $89.79. The Standard & Poor’s GSCI Index of 24 raw materials lost 0.3 percent.

Bloomberg

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell