Canadian Dollar’s Rally Falters on Low U.S. Retail Sales

The Canadian dollar halted its four-day rally today after the report that the retail sales in the U.S. fell unexpectedly caused concern about the global economy and weakened the currencies tied to growth.
The retail sales in the U.S. rose 0.6 percent in April and were expected to increase further by 0.2 percent in May. Therefore, the traders were completely unprepared for the 1.2 percent decline in May. The impact of this data is resounding throughout the markets and affecting the currency.
The economists say that the reason for the loonie’s present underperformance is the sentiment toward risk aversion. The Canadian economy has the strength to help the currency to outperform its counterparts in the long run, though.
USD/CAD trade at 1.0384 today as of 18:28 GMT after opening at 1.0300. CAD/JPY dropped to about 88.16 down from its opening level of 88.66.

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