Thursday, July 31st20.5°C
21450
21755

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 TSX15330.74-194.08
S&P CDNX1001.52-9.58
DJIA16563.30-317.06
Nasdaq4369.773-93.129
S&P 5001930.67-39.40
CDN Dollar0.9155-0.0014
Gold1310.00+6.70
Oil98.02-0.15
Lumber326.90+2.50
Natural Gas3.73-0.017

 
Okanagan Companies
Pacific Safety0.18-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.21-0.01
Cantex0.085+0.02
Anavex Life Sciences0.262+0.002
Metalex Ventures0.08-0.005
Russel Metals35.23+0.01
Copper Mountain Mining2.75-0.08
Colorado Resources0.205-0.015
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.03-0.005
Mission Ready Services0.150.00

 





FEATURED Property
20112442623 Lakeview Road
10085254 bedrooms
$669,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Take charge of your debt

Photo: Thinkstock.comWays to reduce your Debt:Make a budget and get budget counselingA basic first step for debt reduction is to prepare a budget and plan your spending. Once you have a budget, you mu...


Geopolitical tensions rattle markets

The Big Picture Geopolitical tensions rattle markets The spectre of rising geopolitical tensions in Ukraine and Gaza cast a shadow over an otherwise positive week in the markets. News that a passenger...


Learn to delegate effectively

Photo: ContributedI have the pleasure of witnessing people delegate tasks quite often. Sometimes with tremendous success and sometimes with disastrous consequences. I have chaired a lot of committees...

_








Member of BC Press Council


22758