The Canadian dollar strengthened yesterday and is flat this morning. In the past 24 hours, there has been limited news or economic data that has influenced the currency. Instead, the currency is trading primarily as a function of recent USD weakness and strength in crude oil markets. Later today, we'll see retail sales that will point to the health of the overall economy. The forecast for September retail sales is 0.9% month-over-month.
The USD/CAD exchange rate is currently above 1.2680. The euro is flat against the Canadian dollar. EUR/CAD is currently above 1.50. Lastly, the pound is down against the Canadian dollar, with GBP/CAD trading below 1.6870.
This is a fairly light week for the Canadian dollar in terms of economic data releases. Later today, we’ll see retail sales for September. Last week, the Canadian dollar sold off after meeting CPI estimates.
As the Canadian dollar benefits from strong crude prices, we are upgrading the currency to neutral in the medium-term. Looking at a weekly chart, the currency is trading within normal conditions. This is based on various technical indicators on the Canadian dollar currency index.