Also benefiting the Canadian dollar was speculation about officials in Europe devoting effort to confront the sovereign debt crisis.
"I would say there isn't one catalyst but a slew of catalysts which have helped the risk rally," chief currency strategist Camilla Sutton with Scotiabank told Reuters, noting an element of caution regarding overdone gains in the near term. "Anything we measure it against, all the fundamental drivers for CAD are positive for CAD which is good, however if we look at it on any of the charts, it's really overstepped its rally."
Economic data about Canada's retail sales, commentary by central bank governor Mark Carney to a Canadian auto union and the release of minutes from the July meeting of the policy making arm of the U.S. Federal Reserve are likely to influence the loonie's performance on Monday, according to Reuters.
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