Canadian Dollar Rises as October Flash Economic Estimates Show Gains


Canadian retail sales fell 0.5% in September from August, matching estimates, weighted by lower sales at gas stations, according to Statistics Canada data.

However, a quick estimate showed sales rebounded 1.5% in October. Other flash estimates were also optimistic, with manufacturing sales up 2% and wholesale trade up 1.3%.

Global stocks recouped some of the previous day’s losses, buoyed by less hawkish comments on interest rate hikes by Federal Reserve policymakers, although concerns over more COVID infections in China have limited earnings

The safe-haven U.S. dollar fell against a basket of major currencies as the price of oil, one of Canada’s top exports, rose after top exporter Saudi Arabia said OPEC+ was sticking to production cuts and may take further steps to balance the market.

U.S. crude oil futures rose 1.5% to $81.21 a barrel

The Canadian dollar rose 0.4% to 1.34 per greenback, or 74.63 US cents, after trading in a range of 1.3386 to 1.3457. On Monday, the currency hit its lowest level in 11 days at 1.3495.

The currency’s gains preceded a fireside chat with Bank of Canada Senior Deputy Governor Carolyn Rogers on the stability of the financial system. The central bank is due to release its prepared remarks at 11:45 a.m. ET (16:45 GMT).

Yields on Canadian government bonds fell on a more deeply inverted curve, following the performance of US Treasuries.

The 10-year fell 2.9 basis points to 3.058%, while it fell 2.3 basis points below the 2-year rate at a spread of around 88 basis points.

(Reporting by Fergal Smith; Editing by Andrea Ricci)


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