Swiss Franc and Euro Fell While the Pound and Canadian Dollar Rose
Canadian dollar rose by close to 0.5%
The US dollar-Canadian dollar currency pair is inversely related to the Canadian dollar. It fell by 0.47% on December 23, 2015. The strengthening of the Canadian dollar was primarily due to the strong domestic data release in terms of retail sales. The slightly weak US data also helped the Canadian dollar rise ahead of the holiday season. It fell to an 11-year low earlier in the week. To learn more, read Canadian Dollar Fell to an 11-Year Low.
Retail sales and GDP beat market expectations
Statistics Canada published the retail sales and GDP (gross domestic product) for October on December 23, 2015. Retail sales rose by 0.1% in October. The rise was led by the clothing and footwear sector. It rose by 1.9%. Sporting goods and general merchandise also posted a significant rise in October. Out of the 11 subsectors in retail sales, seven posted gains. The real gross GDP for October didn’t change. The report suggested that there were gains in mining, quarrying, and energy. However, it was offset by the fall in manufacturing, utilities, and construction.
Impact on the market
The iShares MSCI Canada ETF (EWC) was trading on a positive bias. It rose by 2.2% on December 23, 2015. The Guggenheim CurrencyShares Canadian Dollar ETF (FXC) also followed a similar trajectory. However, the gains were less compounded. It rose by 0.65%.
Canadian ADRs (American depositary receipts) trading in the US markets were on a positive note after the strong retail sales data. Canada-based ADRs, Canadian Natural Resources (CNQ) and Suncor Energy (SU) rose by 8.0% and 4.2%, respectively, on December 23, 2015. Royal Bank of Canada (RY) fell by 1.4%.
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