Canadian Dollar Higher After Strong Retail Sales

By | September 21, 2018

The Canadian dollar strengthened versus its major equivalents in the European session on Friday, as country’s retail sales grew in July following a fall last month, driven by greater sales at food and beverage stores and gasoline stations.

Data from Data Canada revealed that retail sales rose 0.3 percent on a seasonally changed monthly basis.

The rate matched expectations. It dropped 0.2 percent on month in June.

Core retail sales increased 0.9 percent, beating expectations of 0.6 percent.

This follows a 0.1 percent slide last month.

Separate data showed that customer inflation edged up 0.1 percent on a seasonally changed regular monthly basis in August.

This follows a 0.5 percent gain in July and opposed a 0.1 percent fall expected by economic experts.

Core CPI rose 0.1 percent in August, from a revised 0.5 percent boost seen in July.

The currency held steady versus its significant counterparts in the Asian session, with the exception of the yen.

The loonie advanced to 1.5155 versus the euro, from a 3-day low of 1.5226 hit at 4:45 am ET. The loonie is poised to find resistance around the 1.49 mark.

Study information from IHS Markit showed that Eurozone private sector grew at the second-weakest rate given that late-2016 on subdued manufacturing activity growth in September.

The composite output index fell to 54.2 in September from 54.5 in August. The score was forecast to stay unchanged at 54.5.

The loonie, having actually dropped to a 2-day low of 0.9423 versus the aussie at 4:45 am ET, reversed direction and climbed to 0.9384. On the benefit, 0.92 is perhaps seen as the next resistance level for the loonie.

The loonie increased as much as 1.2886 against the greenback, coming off from a low of 1.2927 hit at 8:15 am ET. The loonie is seen discovering resistance around the 1.27 level.

The loonie rose back to 87.43 against the yen, going to pierce a 7-1/2-month peak of 87.45 seen at 3:00 am ET. Next crucial resistance for the loonie is seen around the 89.00 area.

Figures from the Ministry of Economy, Trade and Market showed that Japan’s all industry activity remained stable in July.

The all market activity index remained flat on month, following a 0.9 percent fall in June. Economic experts had forecast a minimal 0.1 percent rise.

Looking ahead, Markit’s U.S. production PMI for September is set for release soon.

The product has been offered by InstaForex Company – www.instaforex.com

Leave a Reply

Your email address will not be published. Required fields are marked *