Canadian Dollar Advances After Upbeat Retail Sales Data
June 21 2023 - 7:37AM
RTTF2
The Canadian dollar climbed against its major counterparts
during the New York session on Wednesday, as the nation's retail
sales exceeded expectations in April.
Data from Statistics Canada showed that retail sales grew by 1.1
percent in April, after falling by a revised 1.5 percent in March.
The rate was forecast to rise to 0.2 percent.
Core retail sales, excluding motor vehicle and parts dealers,
advanced 1.3 percent in April following a revised 0.4 percent drop
in the previous month. Economists had expected core retail sales to
rise by 0.4 percent.
The Federal Reserve is likely to resume raising interest rates
later this year, Fed Chair Jerome Powell said during testimony
before the House Financial Services Committee.
In prepared remarks, Powell reiterated the Fed is likely to
continue raising interest rates in an effort to contain stubbornly
elevated inflation.
"Nearly all FOMC participants expect that it will be appropriate
to raise interest rates somewhat further by the end of the year,"
Powell said.
The loonie touched 1.3176 against the greenback, its highest
level since September 2022. On the upside, 1.30 is possibly seen as
its next resistance level.
The loonie appreciated to 107.80 against the yen, setting a
7-1/2-month high. The currency is likely to challenge resistance
around the 110.00 level.
The loonie advanced to a 2-day high of 1.4416 against the euro
and near a 2-week high of 0.8909 against the aussie, from its early
lows of 1.4462 and 0.8987, respectively. The currency is seen
finding resistance around 1.42 against the euro and 0.87 against
the aussie.
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