Wednesday, July 29th11.5°C
26925

Canadian dollar flat amid tame inflation data, strong retail figures

TORONTO - The Canadian dollar closed unchanged Friday amid a stronger than expected showing on retail sales and tame inflation data.

The loonie was flat at 91.37 cents US as Statistics Canada reported that the consumer price index for July declined 0.2 per cent, versus the 0.1 per cent dip that economists had expected. This translated to an annualized inflation rate of 2.1 per cent, weaker than the 2.2 per cent reading that was forecast and down from 2.4 per cent the previous month.

Retail sales for June jumped 1.1 per cent over May, much higher than the consensus estimate that had called for a 0.3 per cent advance.

Excluding the vehicle sector, sales rose 1.5 per cent.

The market focus was on the U.S. Federal Reserve and a key speech Friday from Fed chairwoman Janet Yellen.

She offered no signal that she’s altered her view that the American economy still needs Fed support from interest rates that have been near zero since the financial crisis.

The central bank chief also said at the Fed’s annual conference in Jackson Hole, Wyo., that the Great Recession complicated the Fed’s ability to assess the U.S. job market and made it harder to determine when to adjust interest rates. She noted that while the unemployment rate has steadily declined, other gauges of the job market are harder to assess and may reflect continued weakness.

The Fed is generally expected to raise rates mid-2015 but there have been concerns the Fed might move even earlier.

Yellen reminded her audience that rate hikes could come sooner than expected if progress in the labour market continued to be more rapid than anticipated or if inflation moves up more rapidly.

Later in the day, European Central Bank head Mario Draghi told the meeting the ECB is ready to do more to boost the shaky recovery in the 18 countries that use the euro but warned that governments must join in efforts to reduce stubbornly high unemployment.

Meanwhile, geopolitical concerns were on the boil after Ukraine accused Russia of a "direct invasion" after Russia sent dozens of aid trucks into rebel-held eastern Ukraine on Friday without Kyiv’s approval.

The latest round of uncertainty pushed the December bullion contract in New York up $4.80 to US$1,280.60 an ounce.

Elsewhere on the commodity markets, October crude was down 31 cents to US$93.65 a barrel while September copper rose three cents to US$3.20 a pound.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14077.36+75.99
S&P CDNX586.97+5.25
DJIA17630.27+189.68
Nasdaq5097.16+7.95
S&P 5002094.99+1.74
CDN Dollar0.7726-0.0013
Gold1096.40+0.10
Oil48.06-0.35
Lumber259.50+3.40
Natural Gas2.845+0.024

 
Okanagan Companies
Pacific Safety0.175-0.005
Knighthawk0.010.00
QHR Technologies Inc1.37+0.01
Cantex0.05+0.00
Anavex Life Sciences0.78-0.13
Metalex Ventures0.06-0.01
Russel Metals18.35-1.10
Copper Mountain Mining0.82+0.02
Colorado Resources0.06+0.00
ReliaBrand Inc0.0045-0.0022
Sunrise Resources Ltd0.03+0.00
Mission Ready Services0.15+0.00
Decisive Dividend Corp2.60-0.10

 



25528

FEATURED Property
23543431545 Ponderosa Road
$699,900
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 ...

_



26586

27053


Member of BC Press Council