The Canadian Dollar managed to recover some ground against the single currency but remained under pressure despite the release of data which showed that retail sales in the North American nation rose to a record high in November.
The Euro remained supported from data released earlier in the session which showed that the Eurozone’s private sector got off to a good start in 2014. According to Markit’s Flash Eurozone PMI activity climbed to 53.2 in January, up from the 52.1 recorded in December.
The figure was the highest recorded since 2011. Any figure above 50 indicates expansions whilst one below indicates contraction. Growth also picked up in Germany and the rate of decline eased in France.
“The data on manufacturing and services suggested the economic recovery in the Euro region is gaining traction. The outlook is positive for the Euro,” said Jane Foley, a senior currency strategist at Rabobank International.
Back to Canada, and Thursdays data showed that increased sales of cars and winter gear bolstered overall retail sales to a record high. According to Statistics Canada, sales increased by 0.6% to C$41 billion, three times higher than the 0.2% rise forecast by economists.
“Colder weather and earlier than normal winter snowfalls advanced the purchase of winter merchandise at clothing and clothing accessories stores, which rose by 1.1% in November, Statistics Canada said.
The Canadian Dollar managed to firm against the US Dollar following the data release and edged away from a four-and-a-half year low. Despite the positive retail sales data the currency remains under pressure. The Bank of Canada in concerned over inflation.
Canadian Dollar (CAD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Canadian Dollar,,Euro,0.6581 ,
Canadian Dollar,,British Pound,0.5419 ,
Canadian Dollar,,US Dollar,0.9001 ,
Euro,,Canadian Dollar,1.5193 ,