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.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
