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Forex - USD/CAD dips after soft U.S. retail data

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Investing.com -

Investing.com - The U.S. dollar edged lower against the Canadian dollar on Tuesday after data showed that U.S. retails sales rose at a much slower-than-expected rate in April.

USD/CAD touched session lows of 1.0889 and was last trading at 1.0892.

The pair was likely to find support at 1.0845 and resistance at 1.0960, the high of May 6.

Market sentiment was hit after the U.S. Commerce Department reported that retail sales rose just 0.1% last month, missing expectations for a 0.4% increase. Retail sales for March were revised up to a 1.5% gain from a previously reported increase of 1.2%.

Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.

Core retail sales, which exclude automobile sales, were flat in April, disappointing forecasts for a 0.6% increase. Core sales in March were revised up to a rise of 1% from a previously reported increase of 0.7%

Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.28% to 1.4947.

The euro weakened broadly on Tuesday following reports that Germany's Bundesbank is open to more stimulus measures from the European Central Bank.

The Wall Street Journal reported the German central bank would back monetary easing measures if they were needed to keep persistently low levels of inflation from becoming entrenched in the euro zone.

The ECB warned last week that it is "comfortable" with acting at its next meeting in June after it has a chance to review the latest economic projections.

The single currency also came under pressure after data showed that German economic sentiment slumped to a 16-month low in May.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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