Canadian Dollar Climbs After Strong Inflation, Retail Sales Data
July 20 2018 - 5:50AM
RTTF2
The Canadian dollar strengthened against its major counterparts
in early New York deals on Friday, following the releases of better
than expected Canadian consumer inflation for June and retail sales
for May.
Data from Statistics Canada showed that consumer prices edged up
0.1 percent on a seasonally adjusted monthly basis in June, the
same rate as seen in the previous month.
The rate was expected to be flat.
Core inflation rose 0.2 percent on month, after falling 0.1
percent a month earlier.
Separate data showed that retail sales grew more than expected
in May.
The retail sales rose 2 percent on month in May, following a 1.2
percent drop in the previous month.
Economists had expected sales to rise to 1 percent.
Core retail sales improved to 1.4 percent, compared to a 0.1
percent slide last month.
Core retail sales have been expected to climb by 0.5
percent.
Oil prices rose, but remained on track for a weekly drop on
concerns about rising supplies and amid fears that a downturn in
major economies following an escalation of protectionist measures
could hamper demand for the commodity.
The currency has been trading in a positive territory against
its major counterparts in the European session.
The loonie hit a 3-day high of 1.3139 against the greenback,
following a decline to a session's low of 1.3290 at 9:45 pm ET. If
the loonie continues its rise, 1.30 is possibly seen as its next
resistance level.
The loonie climbed to 1.5359 against the euro, after falling to
more than a 3-week low of 1.5468 at 2:00 am ET. On the upside, 1.52
is likely seen as the next resistance level for the loonie.
Data from the European Central Bank showed that the euro area
current account surplus declined notably in May.
The current account surplus fell to a seasonally adjusted EUR
22.44 billion from EUR 29.55 billion in April. This was the lowest
since March 2015, when it totaled EUR 19.46 billion.
Reversing from an early 9-day low of 84.51 against the yen, the
loonie edged up to 85.25. The loonie is likely to find resistance
around the 87.00 level.
Data from the Ministry of Internal Affairs and Communications
showed that Japan consumer prices rose 0.7 percent on year in
June.
That was unchanged from the May reading, although it was shy of
expectations for 0.8 percent.
Having fallen to 0.9782 against the aussie at 2:00 am ET, the
loonie reversed direction and rose to 0.9710. The next possible
resistance for the loonie is seen around the 0.96 level.
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