Investing.com - The U.S. dollar pared gains against the Canadian dollar on Monday after data showed that U.S. retail sales rose less-than-expected last month, fuelling fears that the economic recovery is losing momentum.
USD/CAD pulled back from 1.0434, the highest since Thursday, to hit 1.0400 during early U.S. trade, up just 0.05% for the day.
The pair was likely to find support at 1.0357, Friday’s low and resistance at 1.0470, Friday’s high.
The Commerce Department said U.S. retail sales rose 0.4% in June, slowing from a 0.5% increase in May and undershooting expectations for a 0.8% increase.
Core retail sales, which exclude automobile sales, were flat last month, compared to expectations for a 0.4% increase.
The data came after Federal Reserve Chairman Ben Bernanke said last week that the U.S. economy still needs monetary stimulus. The comments saw investors reassess expectations that the Fed will start to unwind its USD85 billion-a-month bond buying program later this year.
A separate report showed that the Empire State manufacturing index rose to a five-month high of 9.5 in July from 7.8 in June. Economists had forecast a reading of 5.0.
The loonie, as the Canadian dollar is also known, was slightly higher against the euro, with EUR/CAD slipping 0.13% to 1.3571.
Earlier Monday, data showed that Chinese economic growth met expectations in the second quarter, easing concerns over a slowdown in the world’s second largest economy.
Official data showed that Chinese gross domestic product expanded 7.5% in the second quarter from a year earlier, following growth of 7.7% in the three months to March and in line with expectations.
USD/CAD pulled back from 1.0434, the highest since Thursday, to hit 1.0400 during early U.S. trade, up just 0.05% for the day.
The pair was likely to find support at 1.0357, Friday’s low and resistance at 1.0470, Friday’s high.
The Commerce Department said U.S. retail sales rose 0.4% in June, slowing from a 0.5% increase in May and undershooting expectations for a 0.8% increase.
Core retail sales, which exclude automobile sales, were flat last month, compared to expectations for a 0.4% increase.
The data came after Federal Reserve Chairman Ben Bernanke said last week that the U.S. economy still needs monetary stimulus. The comments saw investors reassess expectations that the Fed will start to unwind its USD85 billion-a-month bond buying program later this year.
A separate report showed that the Empire State manufacturing index rose to a five-month high of 9.5 in July from 7.8 in June. Economists had forecast a reading of 5.0.
The loonie, as the Canadian dollar is also known, was slightly higher against the euro, with EUR/CAD slipping 0.13% to 1.3571.
Earlier Monday, data showed that Chinese economic growth met expectations in the second quarter, easing concerns over a slowdown in the world’s second largest economy.
Official data showed that Chinese gross domestic product expanded 7.5% in the second quarter from a year earlier, following growth of 7.7% in the three months to March and in line with expectations.