Canada’s dollar lost the most in more than two months as wholesale and retail sales fell and consumer-price gains stayed below the central bank’s inflation target for a 15th month, fueling concern the economy is slowing.
The loonie, as the currency is nicknamed for the image of the aquatic bird on the C$1 coin, touched a six-week low versus the U.S. dollar before data next week forecast to show Canadian gross domestic product shrank in June. The loonie fell against most major peers amid bets the Federal Reserve will slow stimulus. Government-bond yields climbed to a two-year high.
“There’s been poor Canadian data, especially retail sales, and generally weak risk appetite,” Adam Button, a Montreal-based currency analyst at forexlive.com, said yesterday in a telephone interview. “There’s been a consistent theme of disappointing economic data in Canada, and that points to risks for a downside surprise for GDP.”
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