Loonie Falls As Canadian Retail Sales Grow Less-than-forecast
20 January 2017 - 8:46PM
RTTF2
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 Apr 2024 to May 2024
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From May 2023 to May 2024