The Canadian dollar climbed against most major counterparts on Friday after the release of country's higher-than-expected inflation data for April.
Statistics Canada said consumer prices rose 2.0 percent in the 12 months to April, led by increases in transportation costs. Economists were expecting the index to come in at 1.90 percent. Energy prices increased 1.1 percent in the 12 months to April, following a 5.1 percent rise in March. The slower increase in April was largely attributable to smaller price gains for gasoline and electricity, as well as price declines for natural gas (-13.9 percent).
Meanwhile, the Bank of Canada's core index rose 2.1 percent in the 12 months to April, led by price increases for the purchase of passenger vehicles. This increase followed a 1.9 percent gain in the core index in March.
The loonie is now trading at 1.2911 against the euro and 1.0155 against the U.S. dollar, compared to previous session's new 1-week low of 1.2958 and a fresh multi-month low of 1.0229, respectively. If the loonie rises further, it may target 1.285 against the euro and 1.01 against the greenback. The loonie ended yesterday's deals at 1.2951 against the euro and 1.0198 against the greenback.
Germany's producer price inflation slowed to the lowest level in twenty-two months in April, data released by the Federal Statistical Office showed today.
The output price inflation eased to 2.4 percent in April from 3.3 percent in March, while economists expected inflation to slow to 2.5 percent. The growth rate for April was the smallest since June 2010, when output prices increased 1.7 percent.
Against the yen, the loonie is presently quoted at 78.22, compared to a new multi-month low of 77.49 hit at 1:15 am ET. On the upside, the loonie may target 79.00 level. At yesterday's close, the pair was worth 77.77.
Japanese Finance Minister Jun Azumi said today that authorities are cautiously monitoring the movement of yen.
At a regular press conference, he said excessive reaction of speculators led to a rapid yen appreciation on Thursday. The government is prepared to take timely and appropriate action, Azumi said.
by RTT Staff Writer
For comments and feedback: firstname.lastname@example.org