In European deals on Tuesday, the Canadian dollar showed mixed trading against its major counterparts. While the loonie recovered from a 4-day low against the yen, it dropped from a 4-day high against the Aussie. Against the currencies of U.S. and Europe, the loonie remained lower today.
Oil fell below $74 a barrel today, down for the first time in six days on softer Asian and European shares as renewed concerns over the economic recovery emerged, after reaching a 10-month high yesterday.
U.S. crude fell 51 cents to $73.86 a barrel at 4:04 am ET. On Monday, it settled at $74.37 after hitting $74.81, the highest closing and intraday prices since mid-October. Brent crude was down 67 cents at $73.59.
Commodities markets have closely tracked equities indexes in recent months, as dealers view stocks as a lead indicator of economic performance, which would boost or reduce energy and commodities demand.
Canadian retail sales unexpectedly rose once again in June, driven by higher gasoline prices, according to data released yesterday by Statistics Canada. Retail sales in current dollars rose 1.0% in June to $34.4 billion. Retail sales have risen in five of the last six months, following large drops at the end of 2008.
Economists expected a month-over-month decline of 0.3%, compared with an initially reported gain of 1.2% in May.
The Canadian dollar that fell to a 4-day low of 87.01 against the yen at 2:10 am ET Tuesday bounced back thereafter. As of now, the loonie-yen pair is worth 87.41, compared to 87.80 hit late New York Monday. On the upside, 88.45 is seen as the next target level for the Canadian currency.
The Canadian dollar declined to 1.0808 against the US currency at 2:55 am ET Tuesday. Although the loonie recovered thereafter, it pulled back again shortly and the pair is presently quoted at 1.0791. If the loonie weakens further, it may likely target the 1.095 level. At yesterday's close, the greenback-loonie pair was quoted at 1.0775.
Reports that U.S. President Barack Obama nominated Federal Reserve Chairman Ben Bernanke for a second four-year term, also seemed to have an impact on dollar. Bernanke's term was to expire at the end of January, and his reappointment will require senate confirmation. His term as a policy board member does not expire until 2020.
Bernanke led the biggest expansion of the central bank to avert a second great depression, pared the primary interest rate to near zero, led the rescue of Bear Stearns and American International Group and also poured $1 trillion into the financial system to stabilize the banks.
During early deals on Tuesday, the Canadian dollar slumped to 1.5432 against the euro. The near term support for the Canadian currency is seen around the 1.556 level. The euro-loonie pair was worth 1.5411 at Monday's close.
The euro strengthened as a final report showed that the German economy recovered from the worst recession since the Second World War on strong government and household spending.
The Federal Statistical Office report, released today, showed that the largest Euro-zone economy grew slightly for the first time, following four quarter-on-quarter decreases in a row. The economy expanded 0.3% sequentially in the second quarter, after contracting 3.5% in the first quarter.
In contrast to sequential growth, the price-adjusted GDP was considerably lower than a year ago. GDP was down 7.1% in the second quarter, the largest annual decrease since quarterly GDP data were first produced in 1970, the statistical office said. On a working day adjusted basis, GDP slipped 5.9% versus first quarter's 6.7% decrease.
The statistical office confirmed the initial estimate for the second quarter GDP released on August 13.
The Canadian dollar weakened against the Aussie after reaching a 4-day high of 0.8990 at 2:00 am ET Tuesday. The aussie-loonie pair that closed yesterday's trading at 0.9038 is currently worth 0.9055. The next downside target for the Canadian currency is seen around the 0.909 level.
Investors are now likely focus on the North American session, in which the S&P/Case-Shiller home price index is scheduled to be released at 9 am ET. Economists expect a 16.40% year-over-year decline in the 20-city composite house price index for June.
At 10:00 am ET, the Conference Board is scheduled to release its consumer confidence report for August. The report, which is based on a survey of 5,000 U.S. households, is expected to show that the consumer confidence index rose to 48 in August.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.