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Canadian Dollar Falls After Dismal Retail Sales

The Canadian dollar weakened against its major rivals in the European session in the Thursday, after a data showed that the nation’s retail sales grew less than expected in September.

Data from Statistics Canada showed that the retail sales rose a seasonally adjusted?0.1 percent on month to C$49.1?billion in September.

This was well short of forecasts for a 1 percent gain and follows a revised 0.1 percent increase in August.

Core retail sales, excluding autos, rose 0.3 percent, following a revised 0.4 percent fall last month. Economists had expected the index to increase to 1.1 percent.

Meanwhile, oil prices recovered amid indications of tightening supply in the United States.

Data from the Energy Information Administration showed Wednesday that U.S. crude stocks fell 1.9 million barrels to 457.14 million barrels in the week to November 17.

Crude for January delivery rose $0.18 to $58.20 per barrel.

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

The loonie weakened to 1.2723 against the greenback, off its early near a 2-week high of 1.2673. If the loonie weakens further, 1.29 is likely seen as its next support level.

The loonie hit 2-day lows of 0.9697 against the aussie and 1.5070 versus the euro, off its early highs of 0.9656 and 1.5002, respectively. The next possible support for the loonie is seen around 0.98 against the aussie and 1.52 against the euro.

The loonie slid to near a 3-month low of 87.37 against the Japanese yen, from a high of 87.76 hit at 8:10 am ET. The loonie is seen finding support around the 86.00 mark.

The US markets are closed today in observance of Thanksgiving Day.

The material has been provided by InstaForex Company – www.instaforex.com