The Canadian dollar rose today thanks to the surprisingly good wholesale sales reading, which increased chances for monetary tightening from the Bank of Canada.
Canada’s wholesale sales rose 0.9% in May, exceeding the median forecast of 0.5% and reaching the record high. The April gain was revised from 1.0% to 0.8%. The positive indicator added to the slew of positive data that make analysts believe in monetary tightening from the BoC in the near future.
Today’s release was the only important report ahead of Friday’s gross domestic product. Experts anticipate it to show the same 0.2% growth in May as in April.
USD/CAD slipped from 1.2536 to 1.2517 as of 17:30 GMT today, and its daily low of 1.2483 was the lowest since May 2016. EUR/CAD declined from 1.4619 to 1.4558. CAD/JPY gained from 88.54 to 88.84, bouncing from the daily low of 88.15.
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