The Canadian dollar climbed today with help of macroeconomic data from Canada that was surprisingly good, easing the negative impact that comments of the central bank governor had on the currency earlier this week.
The Consumer Price Index rose 0.3 percent in February from January on a seasonally adjusted basis, accelerating from the previous month’s growth of 0.2 percent. Annual inflation slowed, but was still above the expected level. Retail sales grew 1.3 percent in January, exceeding the forecast value of 0.8 percent.
The positive data alleviated pessimism that haunted the loonie after Bank of Canada Governor Stephen Poloz signaled that an interest rate cut is possible. Still, the currency was heading to weekly losses on the interest rate outlook and the Federal Reserve policy announcement.
USD/CAD fell from 1.1244 to 1.1200 and EUR/CAD declined from 1.5493 to 1.5439 as of 16:12 GMT today. CAD/JPY climbed from 91.03 to 91.34 after falling to 90.64.
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