Canadian Dollar Sinks as Retail Sales Come Out Worse than Expected

The Canadian dollar slid today as news from China and Europe wasn’t particularly favorable, reinforcing investors’ willingness to stick to safer assets and avoid riskier ones. Fundamentals in Canada itself also weren’t very good.

Signs of economic slowdown in China and the eurozone hurt all currencies tied to economic growth, including Canada’s dollar. Reports from the United States were quite good and it might have helped the loonie. Unfortunately for the currency, such possibility hasn’t materialized.

The economic environment in Canada itself also wasn’t particularly good. Retails sales rose 0.5 percent in January, while they were expected to increase 1.8 percent. Core retail sales declined 0.5 percent, while analysts predicted an advance by the same rate.

USD/CAD jumped from 0.9919 to 0.9991 and EUR/CAD advanced from 1.3107 to 1.3188 as of 22:33 GMT today. CAD/JPY was down from 84.02 to 82.63.

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