Poor Canadian Retail Sales Add to Pressure on Loonie

The Canadian dollar fell today for the third consecutive session versus the US dollar and the Japanese yen as worse-than-expected domestic data in Canada added to the downside pressure on the currency that is caused by signs of global economic slowdown. The Canadian currency was stronger against the euro.

The markets reflected the poor mood of traders. The Standard & Poor’s 500 Index of shares was down 0.9 percent today. The S&P GSCI Index, which tracks 24 commodities, dropped 0.5 percent. Not a good trading environment for a commodity currency.

Usually, domestic fundamentals help the Canadian currency, but that was not the case today. Retail sales rose 0.3 percent in May. The figure was much better than the April reading of -0.6 percent, but still below the expected growth of 0.4 percent.

USD/CAD was up from 1.0188 to 1.0222 and CAD/JPY was down from 76.87 to 76.44 as of 22:16 GMT today. EUR/CAD fell from 1.2344 to 1.2322.

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