Forex - USD/CAD trims gains but remains close to 6-week highs
Investing.com
Published May 20, 2016 09:29AM ET
Greenback pulls back from session highs but remains supported
Investing.com - The U.S. dollar trimmed gains against its Canadian counterpart on Friday, after the release of positive Canadian inflation data, but the greenback remained close to six-week highs as expectations for a June rate hike by the Federal Reserve continued to support the greenback.
USD/CAD pulled back from 1.3133, the session high, to hit 1.3101 during early U.S. trade, steady for the day.
The pair was likely to find support at 1.2890, the low of May 15 and resistance at 1.3155, Thursday’s high.
Statistics Canada said the consumer price index rose 0.3% in April, in line with expectations and after a 0.6% gain the previous month. Year-on-year, consumer prices increased by 1.7%, as expected.
Core CPI, which excludes the eight most volatile items, rose by 0.2% last month, beating expectations for an uptick of 0.1%.
A separate report showed that Canada’s retail sales dropped 1.0% in March, compared to expectations for a 0.6% slip and after a revised 0.6% gain the previous month.
Core retail sales, which exclude automobiles, fell 0.3% in March, confounding expectations for a 0.4% fall.
The greenback remained supported after the Fed’s April meeting minutes on Wednesday showed that officials said a June rate hike would be appropriate if economic data indicated that growth was picking up in the second quarter and employment and inflation were firming.
In addition, New York Federal Reserve President William Dudley said on Thursday that the U.S. economy could be strong enough to warrant a rate hike in June or July.
The loonie was lower against the euro, with EUR/CAD gaining 0.33% to 1.4717.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.