The Canadian dollar slipped against the yen and the U.S. dollar in the European session on Friday, as a data showed that the nation’s core retail sales fell unexpectedly in July.
Data from Statistics Canada showed that core retail sales, excluding motor vehicle and parts dealers, dropped 0.1 percent in July after rising 0.9 percent in the previous month. Economists were looking for a gain of 0.3 percent.
Retail sales rose 0.4 percent on a seasonally adjusted monthly basis in July following a flat reading last month. Economists had forecast a 0.6 percent increase.
Meanwhile, crude oil prices rose amid rising worries about geopolitical tensions in the Middle East.
Traders were weighing the likely impact of Tropical storm Imelda on Texas where a major refinery has cut production and shut a crucial oil pipeline and some terminals, and possible drop in energy demand due to slowing global economy.
The currency was lower against its major counterparts in the Asian session, excepting the aussie.
The loonie dropped to 81.20 against the yen from Thursday’s closing value of 81.42. Next key support for the loonie is likely seen around the 80.00 level.
Data from the Ministry of Internal Affairs and Communications showed that Japan consumer prices rose 0.3 percent on year in August.
That was in line with expectations and slowing from 0.5 percent in July – moving further away from the Bank of Japan’s target range of 2.0 percent.
The loonie that closed Thursday’s trading at 1.3261 against the greenback depreciated to 1.3293. The loonie is seen finding support around the 1.35 region.
In contrast, the loonie remained higher against the aussie, with the pair trading at 0.9007. This may be compared to a fresh 2-week high of 0.8991 seen in the Asian session. On the upside, 0.89 is possibly seen as the next resistance for the loonie.
The loonie was trading at 1.4638 against the euro, up from a low of 1.4684 hit at 3:00 am ET. The loonie is likely to find resistance around the 1.44 level.
Data from Destatis showed that Germany’s producer price inflation eased more than expected in August.
Producer prices grew only 0.3 percent year-on-year, slower than the 1.1 percent increase in July. Prices were forecast to rise 0.6 percent.
Looking ahead, Eurozone flash consumer sentiment index for September will be out at 10:00 am ET.
At 11:20 am ET, Federal Reserve Bank of Boston President Eric Rosengren will give a speech about the credit cycle at an event hosted by New York University.
The material has been provided by InstaForex Company – www.instaforex.com