Poor US Fundamentals Sap Strength of Loonie

The Canadian dollar fell today against most of its major peers as poor fundamental reports from the United States dimmed prospects for Canadian exports, while European problems still damp demand for currencies tied to growth.
There was a bunch of unfavorable data from the USA today. Retail sales were down 0.2 percent in May. The Producer Price Index dropped 1.0 percent, while market participants hope from much smaller decline. On top of that, an inflation report tomorrow is expected to show a slowdown by 0.2 percent.
Globally, the situation did not improve much as Europe and its credit woes continue to sap willingness to risk from investors. The Standard & Poor’s 500 Index fell 0.6 percent. Crude oil edged down as much as 1 percent.
USD/CAD climbed from 1.0257 to 1.0293 and EUR/CAD advanced from 1.2833 to 1.2932 as of 21:50 GMT today. CAD/JPY ticked down from 77.51 to 77.12.

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