Sales Drop in Canada Puts Pressure on Loonie - 22.8.2012

Retail sales in Canada dropped unexpectedly by 0.4% to 38.7 billion dollars in June, more than offsetting the gain in May. Lower sales were reported in 7 of 11 subsectors, representing 64% of retail trade. Sales dropped most in building materials sector, gasoline stations and general merchandise stores, the national statistics office reported. The Canadian dollar extended losses against the greenback today after it found resistance yesterday at a 4-month high. Pair USDCAD rose to 0.9945 from 0.9888 earlier in the global day. The greenback also gained ground in European trading against other major currencies, except the Japanese yen.