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USD/CAD to 1.03 as Retail Sales Top Forecast

Canada’s dollar rallied to a one-month high after a report showed retail sales in May increased at the fastest pace in three years, fueling speculation the economy may be improving.

The currency gained versus a majority of its 16 most-traded peers as sales jumped 1.9 percent, almost double the highest projection in a Bloomberg survey of 20 economists, which had a median forecast of 0.4 percent. Reports last week showed wholesale sales rose 2.3 percent, the biggest increase in more than two years, while manufacturing sales climbed 0.7 percent.

“It fits along the lines of the wholesale and manufacturing sales numbers that we saw in the last week and a half or so,” said Greg T. Moore, a currency strategist at Toronto-Dominion Bank. “In the next few weeks, through tame summer trading, we could see more of a grind higher for the Canadian dollar on some of these positive Canadian data trends.”

Bloomberg [1]

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