The Canadian dollar eased against the US currency on Friday, largely shrugging aside a US retail sales report, and remained in its well-trod range. Bonds held their gains despite some encouraging details in the retail sales data. At 9:30 am, the currency was at C$1.1975 to the US dollar, or 83.51 US cents, down from C$1.1956 to the US dollar, or 83.64 US cents, late afternoon on Thursday.
The Bank of Canada was closed on Thursday for Remembrance Day, so no official closing figure was available. Attention was trained on consumer data in the United States since no Canadian economic data were scheduled on Friday.
The Canadian dollar was little changed after figures showed US retail sales rose by 0.2 percent in October, matching expectations after a sharp drop in auto sales was offset by solid growth in other areas.
Excluding auto sales, retail sales were up 0.9 percent compared with forecasts for a 0.5 percent gain and after an upwardly revised 0.8 percent gain in September. "Retail sales in October were generally in line with expectations.
Some attention later on this might focus on the University of Michigan sentiment index to get a read in terms of consumer confidence as we move through the fourth quarter," said Paul Fierily, assistant chief economist at Bank of Montreal.
The preliminary reading of the University of Michigan sentiment survey is expected to show a rise to 93.0 in November from 91.7 in October. The Canadian currency has moved in a band between C$1.19 and C$1.20 to the US dollar all week.
It firmed overnight, nearly reaching 84 US cents, but has pulled back a little as the US dollar is still fragile because market players are concerned about policy issues, not data.
Persistent concern over US budget and current account deficits have kept the greenback under pressure.
That has supported the Canadian dollar, which has risen nearly 9 percent since mid September. It climbed briefly above 84 US cents this week.
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