Tuesday’s reports on Canadian retail sales and core retail sales were in overall strong enough to result in a 34 base points fall of the USD/CAD exchange rate. However, by the end of the session the pair returned to the levels seen before the release. The Greenback is expected to keep trying to get stronger footing against the CAD in the absence of Canadian economic data today.
Statistics Canada said that the country’s retail sales growth slowed more than expected to 0.1% in June from a downwardly revised 0.5% rise in the prior month, while the core measure increased strongly 0.7% after 0.1% drop in the same period. The latest report confirmed expectations for the Bank of Canada to raise interest rates once again in October.
