CANADA FX DEBT-C$ marginally softer after swings on retail sales, BoC
(Updates with new comments, closing number, details)
By Solarina Ho
TORONTO Oct 22 (Reuters) - The Canadian dollar finished the session slightly weaker against its U.S. counterpart on Wednesday, as investors digested unexpectedly weak August retail sales and the Bank of Canada's statement.
The currency had touched the session's weakest level after retail sales, weighed down by lower gasoline prices and weaker sales of new cars and food, unexpectedly fell 0.3 percent.
It quickly pared losses to strengthen to a session high after the Bank of Canada dropped its reference to neutrality in its rate statement on Wednesday.
"It's definitely a dramatic day for Canadian dollar traders," said Adam Button, currency analyst at ForexLive in Montreal.
"The market was clearly influenced by the removal of the reference to neutral in the (Bank of Canada's) statement. But that was well telegraphed ... Part of the strength was that retail sales numbers weren't as bad as initial knee-jerk reaction."
The Canadian dollar finished the session at C$1.1243, or 88.94 U.S. cents, slightly weaker than Tuesday's close of C$1.1228, or 89.06 U.S. cents.
Button anticipated more Canadian dollar weakness going forward. Continued...