USD/CAD (current price: 1.3172)
The Canadian Dollar was again in the center of attention on Friday with the release of the Retail Sales and the CPI reports. Both indicators came in worse than expected, as the retail sector unexpectedly contracted in August, and the Core CPI was unchanged, despite the positive expectations. The Canadian economy still shows some weakness, despite the recovery of energy prices, as the real estate sector continues to be relatively weak, weighing on broader growth measures and the consumer economy.
Our assessment: USD/CAD shot up on Friday to close just below the 1.32 level yet again as the Loonie continues to closely track oil and the Canadian economy is still struggling.
