Canadian dollar reverses gain after retail sales ( UST10Y UST2YR TNX TYX TLT TBT BND UST30Y FXE FXY UUP UDN DXY USDCAD ) (by Deborah Levine)
NEW YORK (MarketWatch) -- The Canadian dollar reversed gains on Tuesday after retail sales unexpectedly fell 0.3% in January, the second monthly decline. "A contraction in retail sales in the month of January sent the Canadian dollar plunging against the greenback," said Kathy Lien, director of currency research at GFT. "These numbers are still softer than the previous month, validating the central bank's decision to remain on hold." Some analysts see the Bank of Canada still raising rates in the second half of 2011. The U.S. dollar (c_cad) traded at 97.97 Canadian cents after the report, after falling as low as 97.41 Canadian cents earlier. It's now up slightly from 97.78 Canadian cents in late North American trading on Monday.