News Column

Canadian Dollar Advances Ahead Of Canada CPI, Retail Sales

June 20, 2014

CANBERA (Alliance News) - The Canadian dollar firmed up against its key counterparts in European deals on Friday as oil prices rose, and investors await data on nation's retail sales and consumer price inflation, due shortly.

Crude for August delivery rose USD0.02 to USD106.07 per barrel.

Consumer price inflation is expected to have advanced 2.1% over year in May, from 2.0% last month. Economists forecast the CPI to increase 0.3% on month, versus 0.2% in April.

The retail sales are seen rising to 0.6% in April on a monthly basis, reversing from last month's 0.1% fall. Excluding autos, the sales may improve to 0.4% from 0.1% a month earlier.

In Iraq, fighting between Islamic State of Iraq and the Levant militants and security forces escalated, and the US President Barack Obama said he would deploy upto 300 military advisers to work with Iraqi forces. However, Obama ruled out committing any combat troops to help quell the rising insurgency in the crumbling state.

The loonie spiked up to 94.34 against the yen, its strongest since April 4. The pair was valued at 94.19 at yesterday's close. The next possible upside target for the loonie is seen around the 95.00 area.

Speaking at annual meeting of the National Association of Shinkin Banks in Tokyo on Friday, the Bank of Japan governor Kuroda reaffirmed that central bank would continue its stimulus program until 2% inflation target is reached. The central bank's stimulus measures are having desired effects on the economy, he added.

The loonie advanced to a 3-day high of 1.4696 against the euro and a 2-day high of 1.0159 against the aussie, compared to yesterday's closing values of 1.4717 and 1.0163, respectively. If the loonie extends advance, it is likely to find resistance around 1.46 against the euro and 1.00 against the aussie.

Even though the loonie reversed from early high of 1.0812 against the greenback, it rose back and was trading steady at 1.0819.

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Source: Alliance News

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