The Canadian dollar fell against its US counterpart today after Canadian retail sales slowed, hinting that Canada’s economy has problems that may slow economic growth. The currency was higher versus the yen.
Canada’s retail sales increased 0.3 percent in November, exactly as forecaster predicted. The growth was three times lower than the October advance by 0.9 percent. The slowdown of sales made economists speculate about problems of Canada’s economic growth.
Mark Carney, Bank of Canada Governor, thinks that one of the problems is over-reliance of Canadian consumers on credit to fuel household spending. Consumers contributed more than a half of the country’s 2 percent economic growth this year. Analysts say that it’s a good time to sell the loonie amid risk aversion that is returning to the Forex market.
USD/CAD was up from 1.0090 to 1.0106 as of 3:35 GMT today, while CAD/JPY rose from 76.93 to 77.09.
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