Canadian Dollar Soft, Recovers vs. US Dollar

The Canadian dollar fell against other most-traded currencies today, though managed to recover versus the US dollar by now. The currency was under pressure from a range of negative factors, including falling prices for crude oil, trade tensions with the United States, and underwhelming domestic macroeconomic data.

Automatic Data Processing reported that Canada’s employment increased by 2,905 jobs in May — a far smaller number than 15,100 registered in April, which itself got a huge negative revision from 30,200. Wholesale sales rose by just 0.1% in April, slowing from March’s 1.4% and missing the analysts’ average estimate of 0.4%.

Now, traders wait for Friday’s inflation and retail sales reports. Economists had predicted ahead of the official releases that headline inflation should accelerate from 0.3% to 0.4%, while core retail sales should rise by 0.5% following the 0.2% drop showed by the last month’s report.

USD/CAD traded at about 1.3301 as of 18:55 GMT today after opening at 1.3306 and rising to the daily high of 1.3335 — the highest since June 22, 2017. Meanwhile, EUR/CAD climbed from the opening of 1.5396 to 1.5459, bouncing from the daily low of 1.5336. CAD/JPY declined from 82.88 to 82.62, retreating from the daily high of 83.20.

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