Canada’s dollar touched the strongest level in almost a week after a report showed the nation’s retail sales rose for a second month. The currency pared the advance as a gauge of volatility dropped. The May sales figures followed a report last week that showed consumer prices climbed the fastest in more than two years in June.
“The underlying momentum in the Canadian economy is solid,” Adam Button, a currency analyst at Forexlive.com in Montreal, said in a phone interview. The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1 coin, strengthened as much as 0.3 percent to C$1.0711 per U.S. dollar, the strongest level since July 18, before trading at C$1.0728 at 5 p.m. in Toronto, up 0.1 percent. One Canadian dollar buys 93.21 U.S. cents.
Implied volatility for one-month options on the U.S. currency against its Canadian peer fell to 4.5 percent after reaching 4.4 percent on July 18, the least on a closing basis since July 4. The measure is used to set option prices and gauge the expected pace of currency swings. The 2014 average is 6.1 percent.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015