Macroeconomic data from Canada was mixed today as the inflation report surprised positively, but retail sales data frustrated traders. As a result, the Canadian dollar fell versus its US peer and the euro, but rose a little against the Japanese yen.
The Consumer Prices Index rose 0.2 percent in January, at the same rate as in December, while analysts expected a bit smaller increase. Retail sales sank 1.8 percent in December, compared to the median forecast of a 0.5 percent drop. Sales were up 0.5 percent the month before.
Investors are concerned that the Canadian economy underperforms and today’s economic released did little to erase such worries. Considering this, it is not surprising to see that this week was terrible for the Canadian dollar, which reached the lowest level since 2009 against the euro.
USD/CAD jumped from 1.1097 to 1.1133 as of 15:18 GMT today and touched the high of 1.1195 intraday. EUR/CAD advanced from 1.5222 to 1.5309 and its daily high of 1.5346 — the strongest level since December 2009. CAD/JPY ticked up from 92.13 to 92.20 following the drop to 91.57.
If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.
