It has been an inconclusive morning for the prospects of North American economic recovery. On the one hand Canadian manufacturing sales rose by more than expected in June. On the other hand, US retail sales for July came in lower than expected. The Canadian dollar is down slightly by 0.1% as oil and gold are both down by about half a percentage. It is important to point out that while the Canadian dollar has recovered to pre-crisis levels against the USD, it continues to trade near 3-year lows against the Euro. Put another way, the rise in the Canadian dollar has really been much more about weakness in the US dollar than confidence in the Loonie. Sentiment (as measured by trading positions) continues to be very negative in the US dollar.
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