19 Dec 2014
USD/CAD rises above 1.1600 after Canadian data
FXStreet (Córdoba) - USD/CAD broke above 1.1600 and climbed to 1.1631 reaching a fresh daily high after the release of Canadian economic data. Afterwards pulled back and it was trading at 1.1605/10, 30 pips above today’s opening price.
The Canadian Consumer Price Index in November suffered the largest drop since December 2012, falling 0.4%, below the 0.2% expected decline. The annual rate fell from 2.4% to 2.0%. Retail sales remained unchanged in October, analysts were expecting a modest decline.
The data weakened the loonie across the board. The better-than-expected retail sales report was offset by the CPI. A low inflation environment reduces expectations of a rate hike by the Bank of Canada.
The Canadian Consumer Price Index in November suffered the largest drop since December 2012, falling 0.4%, below the 0.2% expected decline. The annual rate fell from 2.4% to 2.0%. Retail sales remained unchanged in October, analysts were expecting a modest decline.
The data weakened the loonie across the board. The better-than-expected retail sales report was offset by the CPI. A low inflation environment reduces expectations of a rate hike by the Bank of Canada.