The Canadian dollar slid lower on Friday morning after an early gain, hit by a stronger US dollar that benefited from retail sales data and a consumer sentiment survey, which raised hopes of a steady economic recovery. The Canadian dollar touched a session low of 94.66 US cents following data that showed sales at US retailers rose more than expected in November as consumers stepped up spending on gasoline and a wide range of other goods.
As well, a survey showed US consumer sentiment improved in early December on signs of stabilisation in the labour market and widespread discounts to entice Christmas shoppers. "We're almost getting to the point now where it's not just risk on, risk off. It's starting to look like strong US data is good for the (US) dollar. Certainly the market reacted quickly and bought dollars after that number," said Steve Butler, director of foreign exchange trading, Scotia Capital.
"The sentiment has turned in favour of the US dollar and Canada's is weakening off on the back of that." At 10:22 am (1522 GMT), the Canadian dollar was at C$1.0544 to the US dollar, or 94.84 US cents, down from C$1.0504 to the US dollar, or 95.20 US cents, on Thursday. Earlier, higher prices for oil, a key Canadian export, had helped push the currency higher, but the commodity price turned south after the retail sales data, while gold was also weaker.
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