Loonie rises despite less-than-expected retail sales

The Canadian dollar rose on Tuesday, despite the retail sales index rising lower than forecasts in June.

The data showed that the Canadian retail sales index rose 18.7% in June, lower than analysts' forecasts of 20.2%, vs. a drop of 25% in May.

The core retail sales (excluding automobiles sales) rose 10.6%, below forecasts of 11.9%, vs. a drop of 20.7% in May.

The Canadian economy is recovering from the coronavirus impact, which is reflected in economic data, including retail sales.

However, observers fear that Canada with other countries will be hit by a second coronavirus wave, which will further delay the economic recovery path.

As of 16:13 GMT, CAD/USD rose 0.6% to 0.7436, after hitting a high of 0.7446, and a low of 0.7385.