A softer-than-expected US retail sales report weighed on the USD, lifting the CAD to 1.3860, its strongest level in two months.
The Canadian Dollar strengthened to 1.3860 against the US Dollar, marking a two-month high, as weaker US retail sales data pressured the Greenback. The move followed a disappointing print that fell short of market expectations, dragging the USD lower across major pairs.
US retail sales figures for the month came in below consensus estimates, signaling potential softness in consumer spending. The CAD had already begun its ascent ahead of the data release, but the miss accelerated the rally.
Markets reacted swiftly, with the USD index extending losses while the CAD led gains among G10 currencies. The shift underscores growing divergence between US and Canadian economic outlooks.