News Column

Loonie Extends Gain As Canada CPI Hits 2-year High

May 23, 2014

CANBERA (Alliance News) - The Canadian dollar continued its early gains against its major rivals on Friday, as nation's consumer price inflation climbed to a 2-year high in April.

Data from Statistics Canada showed that Canada's CPI rose 2% on year in April, in line with estimates. The rate also was higher than the last month's 1.5% increase.

Core inflation was 1.4% on an annual basis in April, which matched forecasts. In March, the rate rose to 1.3%.

On month, inflation grew 0.2% on a seasonally basis, same as forecast.

The loonie that recovered from an early low of 93.25 against the yen advanced to an 8-day high of 93.60. The next possible resistance for the loonie is seen around the 94.5 zone.

The loonie approached 1.4840 against the euro, its highest since May 15, when it touched near 5-month high. On the upside, the loonie may face resistance around the 1.47 area. The pair was worth 1.4874 when it closed yesterday's trading.

The loonie rose to a 3-day high of 1.0880 against the greenback, off early low of 1.0909. If the loonie rallies further, it is likely to find resistance at the 1.08 mark.

The Canadian dollar rose back to session's high of 1.0037 against the aussie, reversing from an early low of 1.0075. Further rally above that zone would help it to set a 2-month peak. The loonie may find resistance at the 0.995 level.

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Source: Alliance News

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