The Canadian dollar fell sharply today after the release of macroeconomic reports, which turned out to be worse than analysts had anticipated. The drop of crude oil prices were also unfavorable to the currency.
The Consumer Price Index rose 0.2% in September from August, missing the analysts’ average estimate of a 0.3% increase. Retail sales dropped 0.3% in August after increasing 0.4% in July. That was a complete surprise to economists who were counting on a 0.5% increase.
Prices for crude slid during the Friday’s session as the risk premium was coming off the market as geopolitical tensions in Middle East subsided. Iraq was seeking to resume oil flow through the pipelines in the contested region of Kurdistan, easing concerns about supply disruptions from the major oil-producing area of the second-biggest producer in the Organization of Petroleum Exporting Countries.
USD/CAD rallied from 1.2484 to 1.2565 as of 12:59 GMT today. EUR/CAD advanced from 1.4793 to 1.4833, bouncing from the daily low of 1.4739. CAD/JPY was up from 90.11 to 90.74 intraday but has pulled back to the opening level by now.
If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.
