Canadian Dollar Jumps On Higher Retail Sales Print

Canadian Dollar Jumps On Higher Retail Sales Print 09/25/2012 - 08:55:00 (RTTNews) (RTTNews) - The Canadian dollar edged higher in early New York deals Tuesday following a report showed that the nation's retail sales in July rose well-above last month's reading. Canada's retail sales rose 0.7 percent to C$39.0 billion in July, led by higher sales at motor vehicle and parts dealers, and general merchandise stores, statistics Canada said in a report today. This was much higher than the market expectations of a 0.3 percent increase and well above its revised 0.3 percent drop recorded in the previous month. In volume terms, retail sales rose 0.6 percent. Stripping out autos, retail sales rose 0.4 percent, beating forecasts for a 0.3 percent increase. The Canadian dollar that fell to a session's low of 1.2687 against the euro around 8:00 am ET recaptured almost 36-pips after the retail sales print to reach a high of 1.2651. The euro was notably lower in the morning on speculation that Bundesbank is checking legality of the European Central Bank's recently announced bond buying program. German news paper Bild reported that Bundesbank could bring the issue before the European Court of Justice as the OMT program could violate the treaties for direct financing of state deficits. The common currency pared its losses ahead of the meeting of Chancellor Angela Merkel and ECB President Mario Draghi in Berlin. The Italian Treasury raised 3.937 billion euros from the sale of its zero coupon bonds known as CTZ, which was close to the top target of 4 billion euros set for the sale. The yield on the zero-interest bearing security fell to 2.53 percent from 3.064 percent in the previous sale on August 28. Germany's consumer confidence is set to remain unchanged in October, easing fears of the economy slipping into a recession, survey results from market research group GfK showed. The forward-looking consumer sentiment index came in at 5.9 in October, unchanged from September and matched economists' expectations. The Canadian dollar also gained almost 35-pips to reach a high of 0.9768 against the greenback after the report, snapping back from a session's low of 0.9811. On the upside, the loonie may find target around the 0.9730 level. Rebounding from previous session's 12-day low of 79.23 against the yen, the Canada's currency advanced to 79.67 around 8:30 am ET. The loonie-yen pair is presently worth 79.62 with 80.0 seen as the next likely barrier on the upside. Looking ahead, the S&P/Case-Shiller home price index and the Federal House Finance Agency's house price index-both for July, new home sales for August, consumer confidence and the Richmond Fed's manufacturing index-both for September are the key data to watch in the North American session. For comments and feedback: contact editorial@rttnews.com Copyright(c) 2012 RTTNews.com. All Rights Reserved