The Canadian dollar climbed up against its major opponents in the European session on Friday, after better-than-expected domestic customer cost inflation for June and retail sales for May.
Data from Statistics Canada revealed that consumer rate index was flat on a seasonally changed regular monthly basis, following a 0.2 percent slide in May. Economists were trying to find a 0.1 percent drop.
Core CPI, excluding food and energy, rose 0.2 percent on a seasonally changed monthly basis, from a 0.1 percent gain last month.
Retail sales increased for the third successive month, increasing 0.6 percent to $48.9 billion in May.
This exceeded projections for a 0.3 percent uptick and follows a downwardly modified 0.7 percent boost in April.
Core retail sales, leaving out motor vehicle and parts dealers, dropped 0.1 percent month-on-month in May, compared with a downwardly modified 1.3 advance in the previous month. The index was anticipated to be flat.
On the other hand, oil prices fell ahead of the OPEC meeting next week, when OPEC and Russia will satisfy in Moscow to discuss their supply quota plan.
Petroleum for September shipment fell $0.72 to $46.20 a barrel.
The loonie showed combined efficiency in the Asian session. While the loonie dropped against the euro and the greenback, it held stable versus the yen. Versus the aussie, it increased.
The loonie advanced to 1.2546 versus the greenback, off its early low of 1.2609. The next possible resistance for the loonie is seen around the 1.24 location.
Having fallen to a 9-day low of 1.4683 versus the euro at 2:45 am ET, the loonie climbed to 1.4601. Extension of the loonie’s uptrend may see it challenging resistance around the 1.45 mark.
The Study of Expert Forecasters published by the European Reserve bank revealed that the Eurozone economy is anticipated to broaden at faster than expected pace.
SPF respondents raised 2017 development outlook to 1.9 percent from 1.7 percent and that for next year to 1.8 percent from 1.6 percent. Expectations for 2019 was raised partially to 1.6 percent from 1.5 percent.
The loonie was selling a favorable area versus the aussie with the pair trading at 0.9955. This may be compared with a 3-day peak of 0.9920 set at 11:45 pm ET. More uptrend may take the loonie to a resistance around the 0.97 region.
The Reserve Bank of Australia’s Deputy Governor Man Debelle said that Australia’s rate of interest need not increase automatically with the tightening of other reserve banks.
“Simply as the policy rate in Australia did not need to decrease to the extremely low levels seen in other parts of the world, that other reserve banks increase their policy rates does not immediately imply that the policy rate here has to increase,” Debelle stated in Adelaide.
The loonie bounced off to 88.90 versus the Japanese yen, from a 3-day low of 88.45 hit at 8:15 am ET. The loonie is most likely to target resistance around the 92.00 level.
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