The Loonie bounced to the upside and took losses on Tuesday after the US dollar gained momentum during the American session. The pair hit a fresh daily high at 1.2854 and it is hovering around 1.2832. Earlier on Tuesday it bottomed at 1.2805, the lowest level since May 5.
The greenback was falling sharply across the board amid risk appetite. During the last hours, the greenback recovered ground after US yields turned to the upside and as US stocks trimmed gains. The US 10-year yield rose from 2.90% to 2.97% and the 30-year yield from 3.11% to 3.16%. The Dow Jones is up by 0.55% or 165 points, down 200 points from the high.
Economic data from the US came in above expectations. Retail Sales rose 0.9% in April against the 0.7% of market consensus (March figures were revised higher). Industrial Production advanced 1.1%, above the 0.5% expected by analysts. The numbers helped the dollar.
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