Monday, April 27th8.0°C
25858

Canadian dollar lower amid bigger than expected retail sales slide in December

TORONTO - The Canadian dollar closed lower Friday amid data showing a bigger than expected drop in December retail sales and tame inflation.

The loonie was down 0.28 of a cent to 89.82 cents US as Statistics Canada reported that December retail sales tumbled 1.8 per cent from November. Economists had expected a drop of just 0.4 per cent.

However, the currency was off its worst levels of the session as the agency also reported that the consumer price index was up 1.5 per cent in January compared with a year earlier. That was slightly higher than the 1.3 per cent rise economists had expected but below the Bank of Canada's target of two per cent.

The data served to indicate to markets that the Bank of Canada won't be moving on rates until at least a year from now.

"We remain confident that the most likely path for inflation is a gradual shift towards the (central bank's) two per cent target," said TD Economics senior economist Francis Fong.

"As such, we maintain our view that the bank will likely remain on hold until at least the second half of 2015 before moving off the sidelines."

The dollar had a rough week, sliding about 1.25 cents US.

Analysts point to recent soft data, concerns over the global growth outlook — China's in particular — a dovish tone on interest rates from the Bank of Canada and a potential delay in the Keystone XL pipeline decision.

Elsewhere, there was also a commitment by Japan's central bank to carry on with its extensive stimulus package longer than planned.

The Bank of Japan’s minutes of its January policy meeting were released Friday. Board members said that in order to avoid any misunderstanding about the BOJ’s program of ambitious monetary easing, the bank needed to "provide a clear explanation that it did not strictly set this to end in two years.”

As part of Prime Minister Shinzo Abe’s economic revival strategy, the central bank in April last year announced a policy overhaul that aimed to double the money supply and achieve two per cent inflation within about two years.

The April crude contract in New York declined 55 cents to US$102.21 a barrel.

March copper was ahead one cent at US$3.29 a pound while April gold bullion gained $6.70 to US$1,323.60 an ounce.

The Canadian Press


Read more Business News

25608


Recent Trending




Today's Market
S&P TSX15408.33+15.98
S&P CDNX697.70-1.78
DJIA18080.14+21.45
Nasdaq5092.08+36.02
S&P 5002117.69+4.76
CDN Dollar0.8227+0.0021
Gold1182.00+6.80
Oil55.50-0.88
Lumber258.50+3.90
Natural Gas2.472-0.059

 
Okanagan Companies
Pacific Safety0.12-0.01
Knighthawk0.010.00
QHR Technologies Inc1.38+0.00
Cantex0.035+0.005
Anavex Life Sciences0.43+0.01
Metalex Ventures0.095+0.000
Russel Metals27.16+0.41
Copper Mountain Mining1.15+0.06
Colorado Resources0.095+0.000
ReliaBrand Inc0.004-0.001
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.20+0.00
Decisive Dividend Corporation1.80+0.10

 



25926

FEATURED Property
21054311701 1075 Sunset Drive
2 bedrooms 2 baths
$549,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Buy versus rent

Consider the top five reasons to buy versus rent: #5 Experience Freedom: Home ownership will free you from the ties that bind you to a landlord...no longer will you be dependent on someone else&rsq...


What's your score?

There was a time when we would sit down with nothing more than a sheet of paper and a sharp pencil to do the math. Totalling our expenses and subtracting our revenue, the amount left over was the answ...


Do you dare to dream?

Photo: Thinkstock.comI have never been able to understand why some people can only see as far ahead as the end of the current day. Instead of aiming for long term goals, they just wallow in their ever...

_



25289

26091


Member of BC Press Council


25771