Canadian Dollar Erases Loss Before Report on Consumer Spending
Canada’s dollar erased a loss as commodities declined before a Statistics Canada report that economists predict will show retail sales slowed in April.
The currency was little changed against its U.S. counterpart, which rose against most major peers after the Federal Reserve fulfilled analysts’ expectations by extending a measure of monetary stimulus yesterday. Bank of Canada Governor Mark Carney is due to speak in Halifax, Nova Scotia, today.
“The Fed did exactly what the market was expecting,” Steven Saywell, head of currency strategy for Europe at BNP Paribas SA in London, said in a telephone interview. “There’s already been a significant risk rally in the past two weeks, and we’re taking a breather. We will continue to see a risk rally and dollar weakness on expectations of further easing. We see the Canadian dollar moving back down towards parity.”
Canada’s currency, nicknamed the loonie for the image of the aquatic bird on the C$1 coin, traded at C$1.0184 U.S. dollar at 7:54 a.m. in Toronto after weakening as much as 0.4 percent. One Canadian dollar buys 98.19 U.S. cents. The loonie is headed for a 0.4 percent advance this week.
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