The Canadian dollar rallied against its high-flying U.S. counterpart on Thursday as investors took stock of technical conditions for the currency pair and ahead of domestic data that could show retail sales increasing in October.

The Canadian dollar has now declined 15 per cent since 2021. It has been lower on only two other occasions over the past 20 years – in 2016 and 2020. With the benefit of hindsight, both low points offered investors the opportunity of locking in gains on their U.S.-dollar assets.