CANADA FX DEBT-C$ hits 2010 low after weak retail sales data
* Touches 2010 low of C$1.0573, or 94.58 US cents
* Markets still shaky after Obama bank rule proposals
* Bond prices mostly flat across curve
By Jennifer Kwan
TORONTO, Jan 22 (Reuters) - The Canadian dollar hit its lowest level this year against the U.S. currency on Friday after retail sales data fell more than market expectations, sparking concern about the strength of consumer demand.
The currency touched a low of C$1.0573 to the U.S. dollar, or 94.58 U.S. cents, after data showed retail sales for November fell by 0.3 percent from October, pushed down in part by unseasonably warm weather that cut demand for winter clothing and shoes. Market analysts polled by Reuters had predicted a 0.2 percent fall. [ID:nN22227089]
"The numbers were weaker than expected across the board," said George Davis, chief technical strategist at RBC Capital Markets.
"We're seeing a little bit of faltering on the part of the consumer. That's becoming a little bit of concern."
But the currency had been weak ahead of the data with global equities, typically a barometer of risk appetite, knocked lower on the lingering effects of U.S. President Barack Obama's proposal to put stricter limits on financial institutions' risk-taking. [MKTS/GLOB] [.N] [ID:nN21200151]
"The risk backdrop isn't very favorable right now," said Davis.
"There's a lot of uncertainty with respect to Obama's plans to limit the activity of the banks in the U.S. Commodities are under pressure, stocks are under pressure so that's weighing on the Canadian dollar," said Davis.
At 9:12 a.m. (1412 GMT), the Canadian dollar was at C$1.0558 to the U.S. dollar, or 94.71 U.S. cents, down from Thursday's finish at C$1.0514 to the U.S. dollar, or 95.11 U.S. cents.
The price of oil, a key Canadian export, slipped to around $76 a barrel, while gold prices were also slightly softer. Both commodities exert a strong influence on the Canadian dollar. [O/R] [GOL/]
Government bond prices were largely flat as investors took pause after a rally in prices in the previous session, said Davis. (Editing by Jeffrey Hodgson)
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