Canadian Dollar Touches Five-Week High on Strong Retail Sales and Rate Hike Bets

The Canadian dollar reached a five-week high against the U.S. dollar, touching an intraday peak of 1.3969 and heading for a seventh consecutive daily gain. The rally follows resilient economic data showing Canadian retail sales rose 1.2% in August, alongside a preliminary 0.7% gain in September. Combined with WTI crude futures settling up 3.8% at $103.27 per barrel after drone strikes on Saudi and Russian energy infrastructure, markets now price an 80% probability that the Bank of Canada will hike interest rates by 25 basis points to 2.50% at its October 28 meeting.