Canadian Dollar Remains Soft After Disappointing Retail Sales

The Canadian dollar dropped yesterday due to lackluster retail sales data. Today, the currency remains soft against other most-traded counterparts.
Retail sales rose 0.5 percent in July from the previous month, exactly as was expected. The problematic part of the report was the downward revision of June’s increase from 0.6 percent to 0.4 percent. What is more, the core components of July sales showed no increase while markets had counted on 0.4 percent growth. On top of that, June’s increase of core retail sales also received a negative revision (from 0.8 percent to 0.5 percent).
The Canadian dollar may yet rise as commodities, including crude oil that is so vital for Canada’s economy, gained today. But for now the currency remains subdued.
USD/CAD traded at 1.3308 as of 4:20 GMT today after rising from 1.3270 to 1.3320 yesterday. EUR/CAD was up 1.1 percent from 1.4755 to 1.4899 during the previous trading session before trading at 1.4889 during the current session. CAD/JPY was at about 90.21 following yesterday’s drop from 90.50 to 90.25.

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