Canadian Dollar Weakens Most in Six Month on China Data

The Canadian dollar fell the most in a month against its U.S. counterpart as selling pressure emerged after signs of economic growth from the U.S. and China failed to drive the currency above a key technical level.

The loonie, as Canada’s dollar is nicknamed, posted its second straight weekly decline against the euro on speculation the European Central Bank will allow the 17-nation currency to appreciate. The Canadian dollar rallied earlier in the week against the U.S. currency before falling the most in six months yesterday after it failed to breach levels that have held since October even as China’s economic growth exceeded forecasts. The Bank of Canada is forecast to keep its benchmark interest rate target unchanged when policy makers meet Jan. 23.