Canadian Dollar Drops As Retail Sales Fall Unexpectedly
April 24 2024 - 9:06AM
RTTF2
The Canadian dollar moved down against its major counterparts in
the New York session on Wednesday, following the release of weak
retail sales data for February.
Data from Statistics Canada showed that retail sales fell 0.1
percent in February following a 0.3 percent drop in the previous
month. Economists had expected retail sales to rise to 0.1
percent.
Core retail sales, excluding motor vehicle and parts dealers,
declined 0.3 percent, after a revised 0.4 percent rise in January.
Core retail sales were expected to stagnate in the month.
Traders await more economic data this week, including the
release of first-quarter U.S. GDP data as well as the core
personal-consumption expenditures (PCE) price index, which is the
Fed's preferred measure of inflation.
The economic data is expected to influence the timing of rate
cuts by the Fed.
The loonie dropped to a 5-day low of 1.4670 against the euro and
a 2-day low of 1.3728 against the greenback, from an early high of
1.4609 and a 2-week high of 1.3654, respectively. The loonie is
seen finding support around 1.48 against the euro and 1.39 against
the greenback.
The loonie weakened to a 9-day low of 0.8918 against the aussie
and a 2-day low of 112.84 against the yen, from an early high of
0.8853 and a multi-year high of 113.37, respectively. The loonie
may locate support around 0.92 against the aussie and 108.00
against the yen.
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