Canadian Dollar Falls Vs Yen, U.S. Dollar As Core Retail Sales Disappoint
September 20 2019 - 5:37AM
RTTF2
The Canadian dollar slipped against the yen and the U.S. dollar
in the European session on Friday, as a data showed that the
nation's core retail sales fell unexpectedly in July.
Data from Statistics Canada showed that core retail sales,
excluding motor vehicle and parts dealers, dropped 0.1 percent in
July after rising 0.9 percent in the previous month. Economists
were looking for a gain of 0.3 percent.
Retail sales rose 0.4 percent on a seasonally adjusted monthly
basis in July following a flat reading last month. Economists had
forecast a 0.6 percent increase.
Meanwhile, crude oil prices rose amid rising worries about
geopolitical tensions in the Middle East.
Traders were weighing the likely impact of Tropical storm Imelda
on Texas where a major refinery has cut production and shut a
crucial oil pipeline and some terminals, and possible drop in
energy demand due to slowing global economy.
The currency was lower against its major counterparts in the
Asian session, excepting the aussie.
The loonie dropped to 81.20 against the yen from Thursday's
closing value of 81.42. Next key support for the loonie is likely
seen around the 80.00 level.
Data from the Ministry of Internal Affairs and Communications
showed that Japan consumer prices rose 0.3 percent on year in
August.
That was in line with expectations and slowing from 0.5 percent
in July - moving further away from the Bank of Japan's target range
of 2.0 percent.
The loonie that closed Thursday's trading at 1.3261 against the
greenback depreciated to 1.3293. The loonie is seen finding support
around the 1.35 region.
In contrast, the loonie remained higher against the aussie, with
the pair trading at 0.9007. This may be compared to a fresh 2-week
high of 0.8991 seen in the Asian session. On the upside, 0.89 is
possibly seen as the next resistance for the loonie.
The loonie was trading at 1.4638 against the euro, up from a low
of 1.4684 hit at 3:00 am ET. The loonie is likely to find
resistance around the 1.44 level.
Data from Destatis showed that Germany's producer price
inflation eased more than expected in August.
Producer prices grew only 0.3 percent year-on-year, slower than
the 1.1 percent increase in July. Prices were forecast to rise 0.6
percent.
Looking ahead, Eurozone flash consumer sentiment index for
September will be out at 10:00 am ET.
At 11:20 am ET, Federal Reserve Bank of Boston President Eric
Rosengren will give a speech about the credit cycle at an event
hosted by New York University.
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