Forex News: Canadian Dollar Weakens In Cautious Trade

Canadian Dollar Weakens In Cautious Trade

(RTTNews) - The Canadian dollar declined against its major counterparts in the New York session on Friday, as investors became cautious ahead of the U.S presidential election, jobs data and key tech earnings.

As the election draws near, a tight race between Republican and Democratic candidates triggered uncertainty about the outcome.

Former President Trump plans a radical shift in trade policy and tax cuts for individuals and corporations if re-elected. Some economists predict that his policies could trigger inflation.

Data from Statistics Canada showed retail sales likely increased by 0.4 percent from the previous month in September, according to flash estimate.

Retail sales increased 1.4 percent in August over the same month in the previous year.

Manufacturing sales in Canada decreased by 0.8 percent in September from -1.3 percent in August.

Another data from Statistics Canada said the new house price index in Canada remained unchanged at 0 percent in September. On yearly basis, the index increased to 0.2 percent in September from 0 percent in August.

The loonie fell to a 2-1/2-month low of 1.3886 against the greenback and a 10-day low of 1.5024 against the euro, off its early highs of 1.3838 and 1.4979, respectively. The currency is seen finding support around 1.41 against the greenback and 1.51 against the euro.

The loonie weakened to a 2-day low of 0.9207 against the aussie, from an early 2-day high of 0.9169. If the currency falls further, it is likely to test support around the 0.94 region.

The loonie eased to 109.51 against the yen. This may be compared to an early 2-day low of 109.34. The currency is likely to locate support around the 106.00 level.

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