Monday saw the Canadian dollar advance against most of its counterpart monetary units, prompted higher by the U.S. Commerce Department releasing stronger-than-projected economic data about retail sales last month, Bloomberg reports.
After dropping 0.5 percent in March, retail sales gained 0.1 percent in April, the economic data notes. Economic data released by the U.S. impacts Canada's monetary unit as the nations share strong commerce and trade relations as top partners.
"The loonie is probably a tad overdone – your risk reward of selling the loonie at these levels is probably not too bad," head analyst Dean Popplewell with online currency-trading firm Oanda Corporation in Toronto told Bloomberg on Monday. "We'll probably see some of these Canada cross positions being closed and crosses being taken, and I'd probably feel more comfortable starting to sell the dollar on rallies, and sell some Canada around parity."
But losses to crude oil futures on Monday curbed the loonie's advance as the energy commodity is the top export of the natural-resources rich country.
Retail sales encompass roughly 30 percent of consumer spending in the U.S., according to Reuters.
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