Investing.com - The U.S. dollar dropped to four-month lows against its Canadian counterpart on Wednesday, as downbeat U.S. retail sales data fuelled fresh concerns over the strength of the nation's economy, sending the greenback broadly lower.
USD/CAD hit 1.1930 during early U.S. trade, the pair's lowest since January 15; the pair subsequently consolidated at 1.1968, retreating 0.43%.
The pair was likely to find support at 1.1799, the low of Janaury 15 and resistance at 1.2107, Tuesday's high.
The U.S. Commerce Department reported that. retail sales including automobiles were flat last month, confounding expectations for a 0.2% rise. March's figure was revised to a 1.1% increase from a previously estimated 0.9% gain.
Core retail sales, which exclude automobiles, increased by 0.1% in April, disappointing expectations for a 0.5% gain. The change in core retail sales for March was revised to a 0.7% increase from a previously estimated 0.4% uptick.
The data added to concerns over the strength of the U.S. economy after recent economic reports pointed to weakness in first quarter growth.
The loonie was lower against the euro, with EUR/CAD advancing 0.51% to 1.3547.
Official data earlier showed that euro area gross domestic product grew 0.4% in the first three months of the year, up from 0.3% in the final quarter of 2014 but slightly below forecasts for growth of 0.5%.
On a year-over-year basis, the bloc's GDP grew 1.0% after a 0.9% expansion in the three months to December. Economists had forecast growth of 1.1%.
Data also showed that the euro zone's industrial production slipped 0.3% in March, confounding expectations for a 0.2% rise. February's figure was revised to a 1.0% gain from a previously estimated increase of 1.1%.