Investing.com - The U.S. dollar extended gains against the Canadian dollar on Wednesday, climbing to an eight-day high, following official data showing that Canadian retail sales fell unexpectedly in June.
USD/CAD hit 0.9947 during early U.S. trade, the pair’s highest since August 10; the pair subsequently consolidated at 0.9938, gaining 0.48%.
The pair was likely to find support at 0.9887, the session low and resistance at 0.9969, the high of August 10.
Statistics Canada said retail sales fell 0.4% in June, confounding expectations for a gain of 0.1%, after rising by a revised 0.2% in May.
Core retail sales, which exclude automobile sales, also fell by a seasonally adjusted 0.4% in June, defying expectations for a 0.3% increase.
Market participants remained cautious ahead of the minutes of the Federal Reserve’s August policy meeting, due out later in the session, amid speculation over how close the U.S. central bank may be to implementing another round of stimulus measures.
Investors were also looking ahead to a speech by Bank of Canada Governor Mark Carney later in the day.
Overall market sentiment continued be supported by speculation that the European Central Bank will soon implement policy measures to help stabilize the euro zone's sovereign debt markets.
The loonie, as the Canadian dollar is also known, was weaker against the euro, with EUR/CAD adding 0.23% to trade at 1.2366.
Also Wednesday, the U.S. was to release industry data on existing home sales.
USD/CAD hit 0.9947 during early U.S. trade, the pair’s highest since August 10; the pair subsequently consolidated at 0.9938, gaining 0.48%.
The pair was likely to find support at 0.9887, the session low and resistance at 0.9969, the high of August 10.
Statistics Canada said retail sales fell 0.4% in June, confounding expectations for a gain of 0.1%, after rising by a revised 0.2% in May.
Core retail sales, which exclude automobile sales, also fell by a seasonally adjusted 0.4% in June, defying expectations for a 0.3% increase.
Market participants remained cautious ahead of the minutes of the Federal Reserve’s August policy meeting, due out later in the session, amid speculation over how close the U.S. central bank may be to implementing another round of stimulus measures.
Investors were also looking ahead to a speech by Bank of Canada Governor Mark Carney later in the day.
Overall market sentiment continued be supported by speculation that the European Central Bank will soon implement policy measures to help stabilize the euro zone's sovereign debt markets.
The loonie, as the Canadian dollar is also known, was weaker against the euro, with EUR/CAD adding 0.23% to trade at 1.2366.
Also Wednesday, the U.S. was to release industry data on existing home sales.