The Canadian dollar dropped against its key counterparts in the European session on Friday, after data showed that the nation’s retail sales fell unexpectedly and consumer price inflation rose less than expected in September.
Data from Statistics Canada showed that the inflation slowed to 0.2 percent on a seasonally adjusted monthly basis in September.
Economists had expected the inflation to grow by 0.3 percent, following a 0.2 percent rise in August.
Separate data from the same agency showed that Canadian retail sales declined?0.3 percent in August to $48.9?billion in September. Economists were calling for an increase of 0.5 percent.
This follows a 0.4 percent rise in July.
Core retail sales fell 0.7 percent month-on-month, after a 0.2 percent gain in August.
The figure has been expected to rise by 0.3 percent.
Crude oil futures fell as the dollar continued to steady versus major rivals.
Upbeat US economic news and political turmoil in Spain have helped the dollar, putting a cap on commodities.
Crude for December delivery slipped $0.43 to $51.09 per barrel.
The loonie showed mixed performance in the Asian session. While the currency rose against the aussie and the yen, it held steady against the euro. Against the greenback, the currency declined.
The loonie slipped to a 2-day low of 90.00 against the yen, after having advanced to 90.76 at 6:15 am ET. The loonie is likely to challenge support around the 89.00 region.
The Bank of Japan Governor Haruhiko Kuroda said that the Japan economy has been well-balanced by both external and domestic demand.
The governor said the sustainability of the expansion is high.
The loonie weakened to 1.4853 against the euro, a level unseen since September 1. Continuation of the loonie’s downtrend may see it challenging support around the 1.49 area.
Data from the European Central Bank showed that the euro area current account surplus rose to the highest level in more than a year in August.
The current account surplus rose to EUR 33.3 billion in August from EUR 31.5 billion in July. This was the highest since May 2016.
The loonie hit a 3-day low of 1.2567 against the greenback, from a high of 1.2473 hit at 8:15 am ET. The next possible support for the loonie is seen around the 1.27 level.
The loonie reversed from an early high of 0.9794 against the aussie, falling to 4-day low of 0.9860. If the loonie extends slide, 1.00 is possibly seen as its next support level.
Looking ahead, U.S. existing home sales data for September is due in the New York session.
The material has been provided by InstaForex Company – www.instaforex.com