The Canadian dollar CADUSD weakened to a one-week low against its U.S. counterpart on Friday as disappointing corporate earnings weighed on investor sentiment and domestic data showed retail sales growing less than expected in November.
The loonie was trading 0.5% lower at 1.2565 to the greenback, or 79.59 U.S. cents, after touching its weakest level since last Friday at 1.2568.
“Global risk sentiment is really in the driver’s seat for FX markets right now,” said Erik Nelson, a currency strategist at Wells Fargo. “CAD is following global equities and oil prices lower.”
Wall Street’s main indexes dropped as Netflix shares plunged after a weak earnings report that also weighed on rivals, putting stocks on course to close out a gloomy week on a sour note.
The price of oil, one of Canada’s major exports, was pressured by an unexpected rise in U.S. crude and fuel inventories while investors took profits after the global benchmarks touched seven-year highs this week.
U.S. crude prices settled 0.5% lower at $85.14 a barrel.
The loonie fell 0.1% for the week, giving back gains it made in recent days on rising expectations the Bank of Canada would hike interest rates at a policy announcement next Wednesday.
Canadian retail sales rose 0.7% in November, on higher sales at gasoline stations and building materials and gardening equipment and supplies dealers, Statistics Canada said.
That missed analyst estimates for a 1.2% increase, while preliminary data showed sales falling 2.1% in December.
Canadian government bond yields were lower across a flatter curve, tracking the move in U.S. Treasuries. The 10-year eased 4.3 basis points to 1.790%, pulling back from its highest level in nearly three years on Wednesday at 1.905%.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.