The Canadian dollar declined against most major currencies on Friday amid the release of the country's consumer price index for July.
Statistics Canada said consumer prices rose 1.3 percent year-over-year in July, following a 1.5 percent gain in June. Higher prices for the purchase of passenger vehicles, food purchased from restaurants, meat and electricity were major factors in the increase of the July inflation.
On a seasonally adjusted monthly basis, the CPI declined 0.1 percent in July, after decreasing 0.2 percent in June. Meanwhile, the Bank of Canada's core index rose 1.7 percent in the 12 months to July, following a 2.0 percent gain in June.
Against the yen, the loonie fell to 80.24 from an early European session's new multi-month high of 80.60. On the downside, the loonie may target 80.00 level. The loonie-yen pair closed yesterday's deals at 80.45.
Against the greenback, the loonie declined to 0.9902, compared to Thursday's close of 0.9868. The next support level for the loonie is seen at 0.995.
The loonie that retreated from Asian session's high against the euro held steady thereafter. The loonie fell to 1.2228 against the euro after the data, compared to yesterday's close of 1.2195. If the loonie slides further, it may target 1.225 level.
Eurozone's foreign trade surplus increased in June, the latest figures published by Eurostat showed today.
The trade surplus rose to EUR 14.9 billion in June from EUR 7.1 billion in May. A year ago, the balance was in a surplus of EUR 0.2 billion.
Looking ahead, the preliminary report of the Reuters/University of Michigan's consumer sentiment survey for August is due shortly.
by RTT Staff Writer
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