The Canadian dollar gained in value against its southerly rival on Tuesday, propelled by economic data released by the U.S. and Germany, according to published reports.
Reuters reports July saw U.S. retail sales rise for the first time in four months and demonstrated the biggest gains since February, ticking up 0.8 percent, according to the U.S. Commerce Department. The loonie also benefited from Germany revealing economic growth during the second quarter that was stronger than anticipated, The Canadian Press reports.
But one strategist said there is an increased likelihood of a third round of monetary stimulus by the U.S., more colloquially known as QE3.
"The European GDP came in on expectations so there wasn't really a surprise there," macro strategist Mazen Issa with TD Securities told the news source. "It seems like (expectations of) QE3 is the bias right now in the market."
German growth was 0.3 percent during the April-May period, trumping anticipations of 0.2 percent development in the nation hosting the largest economic system in the euro zone. But that second-quarter growth was lower than the 0.5 percent Germany registered during the first quarter.