Canadian Dollar Falls as US Retail Sales Below Forecast

The Canadian dollar declined today, trimming last week’s huge gains against the greenback, as US retail sales missed forecast, worsening prospects for Canadian exports.

Retail sales rose 0.4 percent in June, slower than the analysts’ estimate of 0.7 percent. The core components of the sales were unchanged instead of expanding 0.5 percent as was predicted. The United States is the most important trading partner of Canada.

The Canadian dollar has rallied 1.8 percent against its US counterpart last week. It was the biggest weekly gain since December 2011. The currency will have hard time keeping gains as this week has started with bad news, spoiling the market sentiment.

USD/CAD ticked up from 1.0384 to 1.0428 as of 21:32 GMT today. EUR/CAD went from 1.3579 to 1.3620 after sliding to 1.3544. CAD/JPY was little changed at 95.75.

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