Canadian Dollar Drops On Downbeat Retail Sales Data
December 20 2019 - 4:28AM
RTTF2
The Canadian dollar depreciated against its major counterparts
in the European session on Friday, as a data showed that the
nation's retail sales fell unexpectedly in October.
Data from Statistics Canada showed that retail sales fell
sharply in October, driven by lower sales at motor vehicle and
parts dealers and at building material and garden equipment and
supplies dealers.
Retail sales declined 1.2 percent in October, following a
decline of 0.1 percent in the previous month. Economists had
expected a 0.5 percent rise.
Core retail sales, excluding motor vehicle and parts dealers,
declined 0.5 percent, in contrast to forecasts for a 0.3 percent
increase.
This follows a 0.1 percent drop in September.
The loonie declined against its most major counterparts in the
previous session on falling oil prices.
The loonie depreciated to a 3-day low of 1.3181 against the
greenback, from a high of 1.3119 seen at 5:00 pm ET. The next
possible support for the loonie is seen around the 1.33 level.
After rising to 0.9030 against the aussie at 5:00 pm ET, the
loonie reversed direction, touching a 1-week low of 0.9085. If the
loonie slides further, it may find support around the 0.92
level.
The loonie declined to a 4-day low of 82.93 against the yen,
after having climbed to 83.36 at 7:00 pm ET. The loonie is seen
locating support around the 80.00 level.
Data from the Ministry of Internal Affairs showed that Japan's
consumer price inflation accelerated in November after the sales
tax hike but remained well below the central bank target.
Core inflation that excludes fresh food rose to 0.5 percent in
November from 0.4 percent in October. The rate came in line with
expectations.
The loonie weakened to 1.4615 against the euro, following a
decline to 1.4568 at 6:15 am ET. On the downside, 1.48 is possibly
found as the next support level for the loonie.
Data from the European Central Bank showed that the euro area
current account surplus increased in October driven by trade
surplus and primary income.
The current account surplus advanced to EUR 32 billion from EUR
28 billion in the previous month.
Looking ahead, U.S. personal income and spending data for
November and University of Michigan's final consumer sentiment
index for December will be featured at 10.00 am ET.
At the same time, European Commission is slated to issue
Eurozone flash consumer confidence survey results for December.
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