Extending its Asian session gains, the Canadian dollar climbed to a new multi-month high against the Japanese yen during early European deals on Thursday. The loonie also showed strength against the US dollar and the European currency, while edged down against the Australian dollar.
Against the US dollar, the Canadian currency gained ground after hitting a 2-day low of 1.1261 at 3:05 am ET Thursday. The loonie is currently trading at 1.1182 against the greenback with 1.108 seen as the next target level. The dollar-loonie pair closed Wednesday's North American session at 1.1223.
The Canadian dollar edged down to 1.5570 against the European currency at 3:00 am Eastern Time Thursday. Thereafter, the Canadian currency reversed its direction and climbed to 1.5503 versus the euro, compared to 1.5518 hit late New York Wednesday. The euro-loonie pair is currently trading at 1.5520. The next upside target level for the loonie is seen around 1.552.
In economic news from Europe, Germany's seasonally adjusted ILO jobless rate rose to 7.7% in April from 7.4% recorded in the same month of the previous year, the Federal Statistical Office said today. That was in line with economists' expectations.
Italian manufacturers and service providers showed increased confidence about the economy in May on expectations that worst of the recession may be over. However, retailers' sentiment dropped on concerns about the current and expected sales.
According to the latest set of economic tendency surveys carried out by the ISAE, manufacturing confidence indicator rose to 68.7 in May from 65.5 in April, the highest since December 2008. It also marked the second rise after seven consecutive declines.
Eurozone economic sentiment improved for the second straight month in May, a survey from the European Commission showed today. The index rose to 69.3 in May from 67.2 in April. The index stood above the expected reading of 69.
A separate survey from the European Commission revealed today that business confidence rose slightly to minus 3.17 in May from minus 3.26 last month. Economists were expecting a reading of minus 3.1.
The Canadian dollar extended its Asian session gains against the Japanese yen during Thursday's early European deals. At 6:25 am ET, the loonie-yen pair rose to 86.85, its highest mark since November 5, 2008. If the pair gains further, 87.5 is seen as the next target level. The pair closed Wednesday's New York deals at 85.01.
The Japanese currency showed weakness across the board today after a government report showed that retail sales in Japan fell 2.9 percent on year in April.
Retail sales dropped for an eighth straight month in April as a fall in housing spending and rising unemployment restrained shoppers away, the Ministry of Economy, Trade and Industry said today. However, the figure was better than analyst expectations who called for a 3.3 percent annual decline following the revised 3.8 percent fall on year in March.
On a monthly basis, retail sales were up 0.6 percent - topping forecasts for a 0.5 percent increase after the 1.1 percent contraction in March.
The Canadian currency that hit a high of 0.8711 against the Australian dollar during Thursday's early Asian deals weakened thereafter. The loonie is presently trading at 0.8758 against the aussie, compared to Wednesday closing value of 0.8707. On the downside, 0.894 is seen as the next target level for the Canadian dollar.
Total new private capital expenditure in Australia, in volume terms, declined a seasonally adjusted 8.9% sequentially in the first quarter, the Australian Bureau of Statistics said today. Economists expected a drop of 6%. In the fourth quarter, the capital expenditure was up 6%.
New housing construction in Australia is expected to contract modestly during the current two-year period, then begin a two-year period of expansion, according to the latest forecast from the Housing Industry Association (HIA).
Across the Atlantic, the U.S. durable goods orders and new home sales reports- both for the month of April and the weekly jobless claims report have been slated for release.
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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.