Investing.com - The U.S. dollar rose to session highs against the Canadian dollar on Tuesday after official data showing that U.S. core retail sales rose at the fastest pace in seven months in July reinforced the view that the Federal Reserve will soon start to unwind its stimulus program.
USD/CAD hit 1.0339 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0336, gaining 0.32%.
The pair was likely to find support at 1.0279, Monday’s low and resistance at 1.0366, the high of July 22.
The Commerce Department said core retail sales, which exclude automobile sales, rose 0.5% in July, compared to forecasts for a 0.4% increase.
Core retail sales for June were revised up to 0.1% from a flat reading.
Overall retail sales rose by a seasonally adjusted 0.2% last month, missing expectations for a 0.3% increase.
Retail sales figures for June were revised up to a 0.6% gain from a previously reported increase of 0.4% the report said.
The data added to the view that the economic recovery is strong enough for the Fed to begin phasing out its asset purchase program later this year.
The loonie, as the Canadian dollar is also known, was almost unchanged against the euro, with EUR/CAD dipping 0.01% to 1.3704.
The euro remained supported after a report showed that the closely watched ZEW index of German economic sentiment rose to a five-month high of 42.0 in August from July’s reading of 36.3. Economists had forecast a reading of 40.0.
The index of economic expectations for the euro zone was also higher, increasing to 44.0, the highest since April 2010, up from 32.8 in July.
A separate report showed that industrial production in the euro zone rose 0.3% in June from a year earlier, more than expectations for a 0.2% increase.
USD/CAD hit 1.0339 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0336, gaining 0.32%.
The pair was likely to find support at 1.0279, Monday’s low and resistance at 1.0366, the high of July 22.
The Commerce Department said core retail sales, which exclude automobile sales, rose 0.5% in July, compared to forecasts for a 0.4% increase.
Core retail sales for June were revised up to 0.1% from a flat reading.
Overall retail sales rose by a seasonally adjusted 0.2% last month, missing expectations for a 0.3% increase.
Retail sales figures for June were revised up to a 0.6% gain from a previously reported increase of 0.4% the report said.
The data added to the view that the economic recovery is strong enough for the Fed to begin phasing out its asset purchase program later this year.
The loonie, as the Canadian dollar is also known, was almost unchanged against the euro, with EUR/CAD dipping 0.01% to 1.3704.
The euro remained supported after a report showed that the closely watched ZEW index of German economic sentiment rose to a five-month high of 42.0 in August from July’s reading of 36.3. Economists had forecast a reading of 40.0.
The index of economic expectations for the euro zone was also higher, increasing to 44.0, the highest since April 2010, up from 32.8 in July.
A separate report showed that industrial production in the euro zone rose 0.3% in June from a year earlier, more than expectations for a 0.2% increase.