TheÂ Canadian dollar today rallied higher against its US counterpart following theÂ release ofÂ upbeat retail sales andÂ inflation data inÂ theÂ early American session. This drove theÂ USD/CAD currency pair toÂ new lows asÂ investors sold theÂ US dollar andÂ bought theÂ loonie based onÂ theÂ strong economic releases.
TheÂ USD/CAD currency pair today dropped from aÂ high ofÂ 1.3289 toÂ hit aÂ low ofÂ 1.3117 after theÂ Canadian releases.
TheÂ currency pair headed lower due toÂ aÂ spike inÂ selling pressure following theÂ release ofÂ theÂ Canadian retail sales data forÂ May byÂ Statistics Canada. TheÂ headline retail sales print surprised toÂ theÂ upside byÂ recording 2.0% growth inÂ May, which was much higher than theÂ expected 1.0% expansion. TheÂ Canadian CPI data forÂ June, which was also released atÂ theÂ same time, beat expectations byÂ coming inÂ atÂ anÂ annualized 2.5% versus theÂ consensus estimate ofÂ 2.3% growth. TheÂ two releases indicated aÂ solid expansion inÂ Canada’s economy, which raised investors’ expectations ofÂ more rate hikes byÂ theÂ Bank ofÂ Canada.
Given theÂ mostly empty US docket, theÂ greenback was largely weighed down byÂ President Donald Trump‘s criticism ofÂ Fed Chair, Jerome Powell‘s stance onÂ interest rate hikes. TheÂ Canadian dollar was further supported byÂ theÂ rising crude oil prices asÂ tracked byÂ theÂ West Texas Intermediate.
TheÂ currency pair’s future performance is likely toÂ be affected byÂ geopolitical events andÂ global oil prices over theÂ upcoming weekend.
TheÂ USD/CAD currency pair was trading atÂ 1.3129 asÂ atÂ 14:44 GMT having dropped from aÂ daily high ofÂ 1.3289. TheÂ CAD/JPY currency pair was trading atÂ 85.09 having risen from aÂ low ofÂ 84.58.
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