The Canadian dollar reached the highest level in a month along with the price of commodity export gold before a government report tomorrow that is forecast to show retail sales accelerated in May.
The currency gained as data last week revealed faster inflation in June, even as consumer-price gains remained below the Bank of Canada’s 2 percent target. The U.S dollar tumbled against all its major peers after Fed Chairman Ben S. Bernanke’s said last week the central bank seeks to assure the economy and labor markets have sufficient momentum before reducing its $85 billion in monthly bond purchases.
“You’re going to get patches where the Canadian economy looks a little bit healthier, you’re going to get patches where commodity prices are in the Canadian dollar’s favor and you’re going to get patches where the U.S. dollar is out of favor,” said Doug Porter, chief economist at the Bank of Montreal, by phone from Toronto.
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