The Canadian dollar dropped today after the report showed that inflation in Canada slowed more than expected in June, reducing incentive for the nation’s central bank to boost borrowing costs.
The Consumer Price Index declined 0.7 percent, not seasonally adjusted, in June from May, following the advance by 0.7 percent in the month before. The expected reading was a decline by 0.2 percent. The drop was attributed to lower prices for the purchase of passenger vehicles and traveler accommodation.
At present, the currency makes attempts to rally and the unexpected increase of retail sales may help it. Canadian retail sales rose 0.1 percent in May, while a drop by 0.3 percent was predicted by market analysts. Growth of sales was registered in 7 of 11
USD/CAD rallied from 0.9431 to 0.9496 as of 16:25 GMT today after posting the intraday high of 0.9529. EUR/CAD advanced from 1.3603 to 1.3625 and CAD/JPY fell from 82.94 to 82.55.
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Earlier News About the Canadian Dollar:
- BOC Rate Statement Invigorates Loonie (2011-07-19)
- Canadian Dollar Looks More Attractive After EU Stress Tests (2011-07-15)
- Loonie Declines vs. Greenback, Remains Strong vs. Majors (2011-07-12)
- Canadian Dollar Surge on Positive Employment Data (2011-07-08)
- Canadian Dollar Falls as China Raises Interest Rates (2011-07-06)
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