Investing.com - The U.S. dollar dropped against its Canadian counterpart on Wednesday, as the release of mostly disappointing U.S. data sparked fresh concerns over the strength of the economy.
USD/CAD hit 1.2962 during early U.S. trade, the session low; the pair subsequently consolidated at 1.2984, sliding 0.39%.
The pair was likely to find support at 1.2897, the low of October 9 and resistance at 1.3136, the high of October 6.
The U.S. Commerce Department reported on Wednesday that retail sales increased by 0.1% last month, missing expectations for a gain of 0.2%.
Core retail sales, which exclude automobile sales, declined by 0.3% in September, worse than forecasts for a fall of 0.1%.
Data also showed that producer price inflation in the U.S. fell for the first time in five months in September.
Producer prices declined by 0.5% last month, worse than forecasts for a drop of 0.2%, while core PPI eased down by 0.3%, disappointing forecasts for a gain of 0.1%.
The greenback also remained under pressure after Federal Reserve board Governor Daniel Tarullo said Tuesday that he doesn’t expect a rate hike this year, while St. Louis Fed President James Bullard said a rate hike this month is unlikely.
The loonie was fractionally lower against the euro, with EUR/CAD easing up 0.09% to 1.4848.
In the euro zone, data on Thursday showed that industrial production fell 0.5% in August after an upwardly revised 0.8% increase in July.