cad fundamentals

Canadian Dollar Rallies on 9.3% Surge in Oil, Gains Could Accelerate on Canadian Retail Sales

Monday, 24 November 2008 22:44:29 GMT  |  Terri Belkas, Currency Strategist

The commodities dollars rocketed higher on increased demand for carry trades and a 9.3 percent rally in oil.

Indeed, the Australian dollar and Canadian dollar both gained more than 3 percent versus the greenback, while the New Zealand dollar rose 2.3 percent. Focusing on the Canadian dollar, the currency could gain further on Tuesday as the September reading of Canadian retail sales are forecasted to have gained 0.4 percent in September, and excluding autos, retail sales are expected to have risen 0.2 percent. However, there is potential for a surprisingly strong reading given the solid employment numbers we’ve seen lately. In fact, the Canadian economy has added on workers for the past three months, and a record 106.9K in September alone. Furthermore, the September reading of Canadian wholesale sales surprisingly jumped 1.5 percent, and can sometimes serve as a good leading indicator for the headline retail sales report. As a result, this 8:30 ET release has the potential to lead the Canadian dollar higher, though a disappointing figure could weigh the Loonie down.


Check out Daily Fundamentals in its entirety for analysis and outlooks on the US dollar, euro, British pound, Japanese yen, and the commodity dollars.

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