Canadian dollar extends losses after poor retail sales number

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Canadian retail sales dropped by 0.6%, double the early expectations of a drop of 0.3%, and following a rise last time. Core retail sales fell by 0.8%, falling short of predictions for a rise of 0.1%.

This significant disappointment sent USD/CAD above 1.05, with 1.0514 being the peak so far.

The Canadian dollar also fell to deeper lows against the euro and the pound, which enjoyed a small disappointment in the US jobless claims.

This is not the first blow that the loonie receives this week. Weak wholesale sales were the first big blow. Recent economic signs are getting worse, and the blockbuster jobs report seen a few months ago seems like a distant memory.

The loonie is also suffering from the drop in oil prices, which was mostly driven by worries about emerging markets.

1.05 is an important level, and this opens the door to 1.0660. Below, 1.0446 serves as support for USD/CAD.

For more, see the Canadian dollar forecast.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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