The Canadian dollar drifted lower against its major counterparts in European deals on Friday, after data showed that Canadian retail sales declined unexpectedly in August and consumer price inflation rose less-than-expected in September.

Data from Statistics Canada showed that retail sales fell in August, primarily driven by lower sales at motor vehicle and parts dealers, and general merchandise stores.

On a seasonally adjusted basis, retail sales edged down 0.1 percent to C$44.0 billion in August. Economists had expected the sales to rise 0.3 percent.

This follows a 0.2 percent drop in June.

Core retail sales, excluding motor vehicle and parts dealers, were flat on month, reversing a 0.3 percent gain seen by economists. The sales had fallen 0.2 percent in June.

Separate data from the same agency showed that Canada's consumer price inflation ticked up 0.1 percent on a unadjusted monthly basis in September. The estimate was slightly down from the 0.2 percent rise expected by economists.

This follows a 0.2 percent drop in August.

Core inflation rose 0.2 percent month-over-month in September, matching expectations. The reading was flat in August.

Meanwhile, Crude oil futures fell on the back of a stronger dollar and on lingering doubts about a deal between OPEC and Russia to curb supplies.

Markets will be paying attention when Baker Hughes releases its North American rig count.

Crude for December delivery fell $0.23 to $50.41 per barrel.

The loonie showed mixed trading in the Asian session. While the loonie held steady against the greenback and the yen, it declined against the aussie. Against the euro, it rose.

The loonie weakened to a session's low of 1.0158 against the aussie, after having advanced to 1.0081 at 5:00 pm ET. The loonie is seen finding support around the 1.03 mark.

The loonie declined to 1.3347 against the greenback, its lowest since March 2016. Continuation of the loonie's downtrend may see it challenging support around the 1.36 region.

The loonie reversed from its early high of 1.4396 against the euro, falling as low as 1.4513. On the downside, the loonie may test support around the 1.47 zone.

Results of a survey by the European Central Bank showed that longer-term expectations for euro area inflation were broadly unchanged, but growth and unemployment projections were lowered.

Average longer-term inflation expectations for 2021 stand at 1.8 percent, unchanged with respect to the previous survey, the quarterly ECB Survey of Professional Forecasters revealed.

The loonie slipped to a 11-day low of 77.60 against the Japanese yen, moving away from an Asian session's high of 78.75. The next possible support for the loonie-yen is seen around the 76.00 area.

Looking ahead, Eurozone consumer sentiment index for October is due shortly.

At 10:15 am ET, Federal Reserve Governor Daniel K. Tarullo is scheduled to talk about "Pedagogy and Scholarship in a Post-Crisis World" at the Columbia Law School Conference on the New Pedagogy of Financial Regulation in New York.

At 2:30 pm ET, Federal Reserve Bank of San Francisco President John Williams is expected to speak before the Federal Home Loan Bank 2016 Member Conference, in San Francisco.

US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Feb 2024 to Mar 2024 Click Here for more US Dollar vs CAD Charts.
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Mar 2023 to Mar 2024 Click Here for more US Dollar vs CAD Charts.