Canadian Dollar Flat; Crude Price Offsets Retail Sales Data

 
   By Ben Dummett 
 

        TORONTO--The Canadian dollar was flat against the U.S. currency Thursday, continuing to trade in its more recent trading band following the release of better-than-expected domestic retail sales but lower crude prices.
        The U.S. dollar was recently at C$1.3032, the same level from late Wednesday, according to data provider CQG.
        Recent weakness in the Canadian dollar stems from the Bank of Canada's move last week to cut interest rates in a bid to reignite domestic growth and expectations of higher rates in the U.S. as that country's economy shows signs of strength.
        The latest mix of data didn't give investors reason to change that view.
        The value of Canadian retail sales increased to a seasonally adjusted 42.97 billion Canadian dollars ($32.96 billion) in May, an all-time high, and beat expectations for a 0.6% gain.
        While that represents a positive sign of improving economic conditions, the price of oil continued to fall to the further detriment of Canada's key energy sector.
        Meanwhile, Canadian grocer Loblaw announced plans to close 52 unprofitable stores over the next year, raising questions over consumer consumption as a potential driver for economic growth.
        "Right now it's one-sided trade" in which investors bid up the U.S. to about the C$1.3050 level and then take profits, said Mario Maselli, a foreign exchange trader at Velocity Trade.
        Write to Ben Dummett at ben.dummett@wsj.com
        (END) Dow Jones Newswires

        July 23, 2015 15:54 ET (19:54 GMT)

#FX
#Forex
#SaleForex
#HigherRates
#DomesticRetailSales
#CanadianDollarFlat
#CrudePricesOffsets
#RetailsSalesData