Investing.com - The U.S. dollar extended gains against its Canadian counterpart on Monday, after official data showing that U.S. retail sales fell for a third consecutive month in June fuelled fears that the economic recovery is faltering.
USD/CAD hit 1.0164 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0157, gaining 0.20%.
The pair was likely to find support at 1.0099, the low of July 5 and a two-month low and resistance at 1.0202, the session high.
The Commerce Department said U.S. retail sales fell by a seasonally adjusted 0.5% in June, confounding expectations for a 0.2% increase, after a 0.2% drop in May.
It was the first time retail sales had dropped in three consecutive months since late 2008.
Core retail sales, which exclude automobile sales, declined for the second consecutive month, dropping 0.4%, against expectations for an increase of 0.1%, after falling by 0.4% in May.
The data fuelled speculation over the possibility of another round of easing from the Federal Reserve, ahead of Fed Chairman Ben Bernanke's testimony on the economic outlook to the U.S. Senate on Tuesday and Wednesday.
In June, Bernanke said the U.S. central bank remained prepared to take additional steps to support economic growth if necessary, including additional asset purchases.
The greenback shrugged off a report showing that the New York Federal Reserve’s index of manufacturing conditions improved more-than-expected in July, as the employment index inched up.
The Federal Reserve Bank of New York said that its general business conditions index rose to 7.4 in July from 2.3 the previous month, outstripping expectations for a reading of 4.0
In Canada, official data showed that foreign investors’ acquisitions of Canadian securities rose significantly more-than-expected in May, mainly in the form of government debt securities.
Statistics Canada said that foreign investment rose to a seasonally adjusted CAD26.11 billion from CAD10.16 in April, blowing past expectations for an increase to CAD13.5 billion.
The Canadian dollar was fractionally lower against the euro, with EUR/CAD inching up 0.10% to 1.2428, after touching a record low of 1.2366 earlier in the session.
Also Monday, the International Monetary Fund said it expects the global economy to expand by 3.5% in 2012, down from a forecast of 3.6% in April, and revised down its outlook for growth in 2013 to 3.9% from 4.1%.
USD/CAD hit 1.0164 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0157, gaining 0.20%.
The pair was likely to find support at 1.0099, the low of July 5 and a two-month low and resistance at 1.0202, the session high.
The Commerce Department said U.S. retail sales fell by a seasonally adjusted 0.5% in June, confounding expectations for a 0.2% increase, after a 0.2% drop in May.
It was the first time retail sales had dropped in three consecutive months since late 2008.
Core retail sales, which exclude automobile sales, declined for the second consecutive month, dropping 0.4%, against expectations for an increase of 0.1%, after falling by 0.4% in May.
The data fuelled speculation over the possibility of another round of easing from the Federal Reserve, ahead of Fed Chairman Ben Bernanke's testimony on the economic outlook to the U.S. Senate on Tuesday and Wednesday.
In June, Bernanke said the U.S. central bank remained prepared to take additional steps to support economic growth if necessary, including additional asset purchases.
The greenback shrugged off a report showing that the New York Federal Reserve’s index of manufacturing conditions improved more-than-expected in July, as the employment index inched up.
The Federal Reserve Bank of New York said that its general business conditions index rose to 7.4 in July from 2.3 the previous month, outstripping expectations for a reading of 4.0
In Canada, official data showed that foreign investors’ acquisitions of Canadian securities rose significantly more-than-expected in May, mainly in the form of government debt securities.
Statistics Canada said that foreign investment rose to a seasonally adjusted CAD26.11 billion from CAD10.16 in April, blowing past expectations for an increase to CAD13.5 billion.
The Canadian dollar was fractionally lower against the euro, with EUR/CAD inching up 0.10% to 1.2428, after touching a record low of 1.2366 earlier in the session.
Also Monday, the International Monetary Fund said it expects the global economy to expand by 3.5% in 2012, down from a forecast of 3.6% in April, and revised down its outlook for growth in 2013 to 3.9% from 4.1%.