Saturday, November 22nd2.7°C
24157
23371

Canadian dollar up amid strong retail data; traders look to rate announcement

TORONTO - The Canadian dollar closed higher Monday as traders took in a strong retail reading from the United States and looked ahead to the Bank of Canada's interest rate announcement.

The loonie moved up 0.22 of a cent to 91.3 cents US.

The U.S. Commerce Department reported that retail sales for March were up 1.1 per cent from February, higher than the 0.9 per cent rise that economists had forecast.

The government also revised February to a 0.7 per cent gain, more than double its previous estimate. Sales had fallen in January and December amid severe winter weather.

The data was well received as it also pointed to stronger economic growth for Canada's largest trading partner.

"Although earlier weather-related weakness suggests consumer spending slowed to around three per cent in the first quarter after the best performance in three years in the fourth quarter, the sharp rebound in March retail sales suggests a complete recovery in Q2, with spending growth close to 3.5 per cent annualized," said BMO Capital Markets senior economist Sal Guatieri.

"This, in turn, should anchor a solid rebound in GDP growth to 3.3 per cent in Q2 from an estimated 1.2 per cent in Q1."

Traders are also focused on the Bank of Canada and the central bank's next interest rate announcement on Wednesday. Analysts universally expect the bank to leave its key rate at one per cent, where it has been since September 2010.

And generally, the announcement isn't expected to have much effect on the currency.

"We expect USD/CAD to be relatively comfortable either side of $1.10 (90.9 cents US) for the next several months, with a shift lower only to come if governor Poloz shifts his tone to a less dovish one," said Camilla Sutton, chief FX strategist at Scotiabank Global Banking and Markets.

"However, the stronger the Canadian dollar is, the more likely governor Poloz will be to maintain his dovish tone, even as the (Bank of Canada) officially holds a neutral tone."

The other major Canadian economic item for this week is the latest read on inflation.

Economists expect that the consumer price index climbed 0.4 per cent in March. They also expect a positive read from the February manufacturing shipments report, which comes out on Tuesday.

Commodity prices were mixed, with May crude on the New York Mercantile Exchange up 31 cents to a six-week high of US$104.05 a barrel.

May copper was up one cent at $3.05 a pound while June gold bullion gained $8.50 to US$1,327.50 an ounce.

The Canadian Press


Read more Business News

22970


Recent Trending




Today's Market
S&P TSX15111.13+35.95
S&P CDNX789.135.56
DJIA17810.0691.06
Nasdaq4712.97+11.102
S&P 5002063.50+10.75
CDN Dollar0.8901-0.0002
Gold1201.50+10.60
Oil76.72+0.87
Lumber331.50+4.50
Natural Gas4.236-0.253

 
Okanagan Companies
Pacific Safety0.155-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.30+0.03
Cantex0.04+0.005
Anavex Life Sciences0.178+0.008
Metalex Ventures0.03+0.005
Russel Metals31.62+0.82
Copper Mountain Mining2.24+0.06
Colorado Resources0.125-0.015
ReliaBrand Inc0.013-0.002
Sunrise Resources Ltd0.050.00
Mission Ready Services0.35+0.015

 
23744




FEATURED Property
17877285342 Signet Crescent, Kelowna, BC
4 bedrooms 3 baths
$1,325,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...


Retirement: Health Issues

Our health is really our greatest asset and maintaining our health is of tremendous importance. You want to do what you can to ensure that health issues will not jeopardize the enjoyment of your retir...


Be quiet already!

No, you’re not crazy. There really are voices in your head. Voices that keep you from doing what you need to do during your customer care calls. It can be the voice of your teachers, your parent...

_



24156

24207


Member of BC Press Council


22707