Canadian Dollar Eases After Inflation Data
September 22 2017 - 5:14AM
RTTF2
The Canadian dollar retreated from its early highs against its
major counterparts in the European session on Friday, after data
showed that the nation's consumer price inflation rose in line with
forecasts in August.
Data from Statistics Canada showed that inflation rose a
seasonally adjusted 0.2 percent on month in August.
The reading was unchanged from last month and matched
economists' expectations.
Core inflation slowed to 0.1 percent from 0.2 percent in
seasonally adjusted terms.
Separate data showed that retail sales rose more than expected
in July, led by higher sales at motor vehicle and parts dealers and
food and beverage stores.
On month, retail sales increased 0.4 percent to
C$49.1 billion in July.
This follows a 0.1 percent uptick in June and exceeded
expectations for a 0.2 percent gain.
Core retail sales grew 0.2 percent on a monthly basis, compared
to a 0.4 percent growth last month. Economists had forecast the
sales to improve 0.4 percent.
Oil prices fell as a meeting between OPEC and non-OPEC nations
kicked off in Vienna, where they discuss compliance with ongoing
production curbs to contain the global oil glut.
The ministers would discuss about the possible extension of 1.8
million barrels per day of supply cuts, which is set to expire in
March 2018.
Crude for November delivery dropped $0.14 to $50.41 per
barrel.
The loonie showed mixed performance in the Asian session. While
the currency rose against the aussie and the greenback, it fell
against the yen and the euro.
The loonie retreated to 90.96 against the yen, from a 4-day high
of 91.45 hit at 8:15 am ET. This may be compared to a 2-day low of
90.67 hit in the Asian session. If the loonie extends decline,
80.00 is possibly seen as its next support level.
The loonie reversed from an early 2-day high of 1.2253 against
the greenback, falling back to 1.2317. Continuation of the loonie's
downtrend may see it challenging support around the 1.25
region.
The loonie hovered at a 2-day low of 1.4743 against the euro,
after having advanced to 1.4659 at 8:15 am ET. The next possible
support for the loonie is seen around the 1.48 area.
Flash data from IHS Markit showed that the eurozone private
sector ended the third quarter on a strong note in September, with
growth in activity picking up to its highest since May.
The headline composite output index rose unexpectedly to 56.7 in
September from 55.7 in August. The expected score was 55.6.
The loonie fell to 0.9816 against the aussie, off its early
4-day high of 0.9750. If the loonie extends decline, 0.99 is
possibly seen as its next support level.
Looking ahead, Markit's U.S. manufacturing PMI for September is
due shortly.
At 9:15 am ET, ECB Vice President Vitor Constancio is chairing
panel "Macroprudential policy beyond banking" at the 2nd ESRB
annual conference in Frankfurt, Germany.
Federal Reserve Bank of Kansas City President Esther George
gives opening keynote before the Federal Reserve Banks of Kansas
City and Dallas Energy Conference: "Global Oil Supply & Demand:
Prospects for Greater Balance at 9:30 am ET.
Federal Reserve Bank of Dallas President Robert Kaplan
participates in moderated Q&A session before the Federal
Reserve Banks of Kansas City and Dallas Energy Conference: "Global
Oil Supply & Demand: Prospects for Greater Balance" at 1:30 pm
ET.
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