Thursday, July 30th24.9°C
26925
24949

Canadian dollar erases early losses as inflationary pressures grow

TORONTO - The Canadian dollar closed higher Friday as the latest inflation data showed rising price pressures, suggesting that a rate cut by the Bank of Canada is off the table.

The loonie moved away from the lows of the morning and was up 0.2 of a cent at 92.0 cents US as Statistics Canada reported the consumer price index for April rose at an annualized rate of two per cent, in line with expectations and up from 1.5 per cent the previous month.

"We believe this could prove a spark for the Bank (of Canada) to begin toning down its focus on 'downside risks to inflation', that has provided a dovish tinge to their official neutral bias, possibly as soon as the next rate meeting on June 4," said Mark Chandler, head of Canadian FIC strategy at RBC Dominion Securities.

On a monthly basis, the CPI was up 0.3 per cent, lower than the 0.4 per cent reading that had been forecast.

In the U.S., positive housing data helped send markets higher heading into the U.S. Memorial Day long weekend.

The annual rate for new home sales in April rose to 433,000, up from a revised 407,000 in March and better than the 429,000 reading that economists expected. But that is still below levels of 446,000 a year ago.

Figures released Thursday showed sales of existing homes rose 1.3 per cent in April, the fastest pace since December.

Elsewhere on the economic front, a closely watched survey showed that German business confidence has dipped, with companies less optimistic about both their current situation and the outlook for the next six months. The Ifo institute said Friday that its confidence index, a key indicator for Europe’s biggest economy, slipped to 110.4 points this month from 111.2 in April.

Standard & Poor’s rating agency has upgraded Spain's sovereign credit grade a notch to BBB, the third agency to do so in recent months and a further sign the country is turning the corner after five years of economic turmoil. The agency cited improved economic prospects and praised the conservative government’s structural and labour reforms since 2010.

On the commodity markets, July crude in New York gained 61 cents to US$104.35 a barrel.

June gold bullion faded $3.30 to US$1,291.70 an ounce, while July copper rose three cents to US$3.17 a pound.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14346.41+44.61
S&P CDNX586.89+2.13
DJIA17731.55-19.84
Nasdaq5126.35+14.62
S&P 5002106.71-1.86
CDN Dollar0.7689-0.0032
Gold1096.90+0.60
Oil49.21+0.05
Lumber251.20-0.40
Natural Gas2.883+0.062

 
Okanagan Companies
Pacific Safety0.18+0.00
Knighthawk0.010.00
QHR Technologies Inc1.42+0.02
Cantex0.05+0.00
Anavex Life Sciences0.7985+0.0120
Metalex Ventures0.045-0.005
Russel Metals19.25+0.04
Copper Mountain Mining0.80-0.05
Colorado Resources0.06+0.00
ReliaBrand Inc0.0045-0.0022
Sunrise Resources Ltd0.03+0.00
Mission Ready Services0.14-0.01
Decisive Dividend Corp2.50-0.08

 





FEATURED Property
23717671244 Devonshire Avenue
5 bedrooms 2 baths
$489,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...


Income from home equity

Photo: Thinkstock.comWhen retirement funds run low, seniors often ask if tapping into the equity in their home is the right way to retain financial independence. To see if this option might be a good ...

_





27052


Member of BC Press Council