Following some surge early in the week after Fed’s decision to keep existing interest rates unchanged until the end of this year, USD to CAD conversion rate fell sharply in the last few sessions amid recovery in the USD exchange rate and poor economic reports from Canada.
Canada retail sales declined 0.1% in July, in spite of estimates for the growth of above 2%. Its retail sales also declined 0.1% in June, compared with the same period of last. The ex-autos sales plunged 0.1% in July, compared with the expectation for the growth of +0.4%.
Barring gas prices, retail sales values increased 0.2% in July. In addition, falling prices by and large were a key driver amid July for aggregate deals values, as aggregate deals volumes extended 0.3% m/m in July.
The change in real sales (rather than the dollar estimation of those deals) is reliable with a projection for a 0.2% m/m pick up in July GDP after the 0.6% surge in June. The different real Q3 GDP measure is on track for a 3.2% bounce back after the 1.6% drop in Q2, which could aid CAD currency converter rate to USD.
Likewise Canadian CPI eased back to a 1.1% y/y rate in August, which was much slower than expected growth of +1.4% in the wake of extending at a 1.3% clasp in July. Total CPI declined 0.2% m/m in August taking after the coordinating 0.2% drop in July.
The Bank of Canada’s core CPI measure eased back to a 1.8% y/y pace in August from the 2.1% y/y development rate in July. The core CPI was level in August, coordinating the level perusing in July. Lower than expected data significantly impacted the exchange rate of US dollar to Canadian loonie.
USD to CAD currency rate shot up to 1.3140 highs from 1.3035 USD to CAD exchange rate after the cooler Canada CPI and milder retail deals result. Solidified oil prices weighed on USD to CAD currency conversion rate.