The Canadian dollar advanced against other major currencies in the European session on Wednesday as sentiment got a lift after U.S. President Barack Obama won election for a second term.
The victory for Obama boosted investor confidence on hopes that the Fed will maintain its easy monetary policy to strengthen the economy. The news also eliminated market uncertainty as Obama's rival Romney promised to replace Federal Reserve Chairman Ben Bernanke during his campaign.
The loonie climbed to a fresh 3-week high of 1.2692 against the euro, reversing from an early low of 1.2573. On the upside, the loonie is likely to break 1.26 level. The euro-loonie pair closed Tuesday's deals at 1.2718.
Retail sales in the euro area decreased at a slightly faster rate than economists expected in September, after recording a modest increase in the previous month, data released by statistical office Eurostat showed.
Retail sales volume decreased 0.2 percent month-on-month in September, reversing the previous month's 0.2 percent rise. Economists had forecast a more modest decrease by 0.1 percent for September
Against the aussie, the loonie that closed yesterday's deals at 1.0358 edged up to 1.0338. The next resistance level for the Canadian unit is seen at 1.03.
The rate of contraction in Australia's construction sector activity eased in October, a survey by Australian Industry Group and the Housing Industry Association showed today.
The AiG/HIA performance of construction index rose to 35.8 in October from 30.9 in the previous month. However, the index reading below 50 suggested a solid deterioration in business operating conditions.
The loonie hit 0.9877 against the greenback for the first time since October 19. The next upside target level for the loonie is seen at 0.985. At yesterday's close, the pair was worth 0.9924.
The loonie that recovered from an early low of 80.44 against the yen strengthened to 81.37, its strongest level since September 19. If the loonie rises further, it is likely to break 82.00 level. The pair closed deals at 81.01 yesterday.
Moody's raised its outlook on Japan's banking system to stable from negative citing the stability in the banks' operating environment and asset quality and liquidity.
The change is the first since the negative outlook was assigned in 2008, it said.
Looking ahead, the U.S. consumer credit and the weekly crude oil inventories are due in the North American session.
