An unexpected fall in factory sales earlier this year in Canada pulled down the loonie on Tuesday against the U.S. dollar, marking the second consecutive trading session of losses for the monetary unit, Bloomberg reports.
But while Canada released weaker economic data, the U.S. noted home construction increased last month, drawing attention to the two nations' inverse economic performances. The loonie also fell amid concerns about the sovereign debt crisis re-emerging in the euro zone as member nation Cyprus is unlikely to accept the terms and conditions in exchange for the bailout that was approved this past weekend.
"We're a little softer on the back of the data that just came out, brushing up against resistance for the U.S. dollar here at C$1.0255/60," foreign exchange sales managing director Matt Perrier with BMO Capital Markets told the news source on Tuesday.
The next 14 days of trading on currency markets will see the loonie's performance continue to slump, according to the managing director's prediction.
Weak aerospace, auto and energy industries' production tugged down manufacturing sales during January in Canada, according to Reuters
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