The Canadian Dollar continued to extend its losses against the Greenback on Thursday, the USD/CAD rate moved from the low 1.3’s to finish the North America Session at 1.3083. Towards the end of the European session, the pair did see a brief drop as crude oil extended its slide which hurt demand for the U.S dollar. Once the NA session got underway, the pair managed to recoup losses and rallied to a 3-week high.
This morning the loonie gave up three-quarters of a cent after the release of very poor economic fundamentals. CPI figures missed expectations on all readings for CPI MoM for September posting -0.4% vs expectations of 0.0%, while Core MoM printed 0.0% vs 1.8% expected and, YoY Core CPI missed expectations of 2.7% and printed 2.2%. Also adding to the Canadian dollar's weakness was the release of Retail Sales also missing the mark. Retail Sales ex Autos for August published at -0.4% consensus was for 0.2% and the previous saw 0.8%, Retail Sales for August came in at -0.1% vs. prior of 0.2% also below the consensus of 0.3%. These fundamentals are not offering any support for the loonie as market participants eye the Bank of Canada's interest rate announcement next week and start to question if the BoC will be as hawkish as projected.
On the technical front, resistance is seen at 1.3157, and first support is at 1.3072. The Canadian dollar will be under pressure from its G10 counterpart after the CPI and Retails Sales poor prints.