December 22, 2011
What an up and down day for the Loonie! After sprinting to as low as 1.0210 midway through the London session, the pair reversed course and made its way back up to the 1.0300 handle. By the end of the day, the pair was trading at 1.0260, marking a 40-pip loss on the day.
One set of data that boosted the Canadian dollar early were retail sales figures that were released in the New York session. Headline sales growth was at 1.0% in November, while core retail sales were up by 0.7%. These figures were much better than the expected 0.3% and 0.4% that experts were predicting. I guess the Thanksgiving shopping spirit spilled over on to the Great White North!
Nothing coming out today from Canada, so we may see less movement on the Loonie. In any case, just be careful out there as you never know when we’ll see an exaggerated move for no reason other than that liquidity is pretty thin right now. Good luck!
"The only cable I watch is the pound baby."