The Canadian dollar drifted lower against its major counterparts in the European session on Friday, as data showed that domestic retail sales grew slower-than-expected in November.

Data from Statistics Canada showed that retail sales grew 0.2 percent on a seasonally adjusted monthly basis in November, slower than forecasts for a 0.5 percent growth.

This follows a 1.1 percent growth in October.

Core retail sales edged up 0.1 on a monthly basis, compared to forecasts for a flat reading. The index logged a 1.4 percent growth in October.

Separate data from the same agency showed that the consumer price inflation rose 0.3 percent on a seasonally adjusted monthly basis in December. Economists had expected the index to be flat on month.

This follows a 0.2 percent decline in October.

Core inflation, excluding food and energy, increased 0.2 percent month-on-month in December, following a flat reading a month ago.

Meanwhile, crude oil futures climbed following positive data from China, as well on indications of tighter global oil markets after the landmark deal by the OPEC.

Monthly report from the International Energy Agency showed Wednesday that crude production from OPEC declined 320,000 barrels a day to 33.09 million barrels a day in December.

The Paris-based agency said that the OPEC output may fall steeply in January as Saudi Arabia and its neighbors enforce supply cuts.

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

The loonie declined to a 2-day low of 85.89 against the yen, from a high of 86.39 hit at 7:45 pm ET. The next possible support for the loonie-yen pair is seen around the 84.5 mark.

The loonie fell to more than a 2-week low of 1.3388 against the greenback and a 3-week low of 1.4255 against the euro, off its early highs of 1.3284 and 1.4188, respectively. If the loonie extends decline, it may locate support around 1.345 against the greenback and 1.44 against the euro.

The loonie weakened to 1.0091 against the aussie, its weakest since November 28, 2016. The loonie is seen finding support around the 1.03 level.

The U.S. Baker Hughes rig count data is set to be published later in the day.

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