Canadian dollar registers second day of gains

The Canadian Dollar has extended into a second day of gains following Tuesday’s gains, with wholesale and business sales figures in Canada showing slight recovery. However, declines in Crude Oil prices are keeping CAD gains on a tight leash.

Canadian Manufacturing Sales in September beat the street, printing at 0.4% against the -0.1% forecast, but slipped back from August’s 1.0%. Wholesale sales for September softened significantly but still beat the flat forecast to print at 0.4%, down from the previous month’s 1.8%.

US data did not meet expectations, with Retail Sales for October declining from a revised 0.9% in September to -0.1%, contracting but still holding above the forecast -0.3%. The Annualized US Core Producer Price Index (PPI) Ex Food & Energy for the year into October came in below expectations, printing at 2.4% against the forecast of 2.7%. Crude Oil is seeing some declining prices on Wednesday, limiting CAD gains.

Thursday brings Canadian Housing Starts and changes in employment insurance benefits recipients. An additional day of gains for the Canadian Dollar against the US Dollar is bringing the USD/CAD back down from the 1.3700 handle, testing support barriers near 1.3650.