Canadian Dollar Weak Ahead of Retail Sales Report

The Canadian dollar fell today ahead of this week’s retail sales report that is expected to show a small decrease of sales. The speculations about quantitative easing tampering by the Federal Reserve were not helping the currency either.
Analysts estimated ahead of the official report that Canadian retail sales dropped 0.3 percent in June after jumping 1.9 percent in May. Statistics Canada will release its estimate on August 22. Other Canadian macroeconomic reports this week are expected to be more positive.
Talks about possible reductions of Fed’s stimulus were hurting risk-sensitive currencies. Such speculations hushed last week after a string of negative reports, but resurfaced again this week.
USD/CAD rose from 1.0342 to 1.0372 and EUR/CAD advanced from 1.3792 to 1.3829 as of 2:28 GMT today. CAD/JPY was little changed at 94.16 after rising 94.45 earlier.

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