Canadian Dollar Retreats from its 3-week High

On Thursday (4-15-21), the Canadian Dollar (aka Loonie) edged lower against its U.S. counterpart (USD), pulling back from an earlier 3-week high set on March 22 as domestic data showed a bigger than anticipated drop in Canadian factory sales. while Canadian investors weighted in on newly added restriction on the economy to battle the ongoing third wave of the COVID-19 pandemic. The Loonie was trading 0.2% lower at 1.2543 to the USD, or 79.73 U.S. cents. The weakest performance among all G10 currencies. According to Statistics Canada (StatsCan) Canadian manufacturing sales decreased -1.6% in February from January, compared with expectations for a 1% decline, amid a shortage of semiconductors that has stalled production at some auto plants. Analysts expect the Loonie, which has gained 1.5% since the beginning of the year, to benefit from a potential reduction by the Bank of Canada of its bond purchases, a Reuters poll showed this month.