The Canadian dollar advanced versus 15 of its 16 most-traded peers after April retail sales unexpectedly rose in the U.S., Canada’s biggest trading partner.
The currency gained with its U.S. counterpart as the 0.1 percent increase followed a 0.5 percent drop in March, Commerce Department figures showed in Washington. The median forecast of economists surveyed by Bloomberg called for a 0.3 percent decrease. Canada’s currency climbed against the dollars of New Zealand and Australia, fellow commodities exporters, as crude oil declined for a third day.
“What’s good for the U.S. is generally good for Canada, so in that regard the Canadian dollar will react accordingly,” Mazen Issa, Canada macro-strategist at Toronto-Dominion Bank’s TD Securities, said by phone from Toronto. “Our bias it still towards a weaker Canadian dollar because our expectation over the medium-term is that growth in the U.S. will be much more robust than it will be in Canada. But, for the day at hand, a positive day for the Canadian dollar.”
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