The Canadian dollar continued to be strong against most major counterparts in the Asian session on Friday amid risk appetite, as analysts speculate that the U.S. Federal Reserve will delay raising interest rates.
The weak U.S. inflation data on Thursday suggested a rate hike may be more distant.
Consumer prices in the U.S. fell in line with estimates in the month of September, the Labor Department revealed in a report on Thursday, although the report also showed that core prices rose slightly more than expected.
Crude oil for November delivery are currently up $0.42 to $46.80 a barrel.
Thursday, the Canadian dollar rose 0.55 percent against the U.S. dollar, 0.45 percent against the yen and 1.32 percent against the euro.
In the Asian trading, the Canadian dollar rose to a 4-day high of 92.68 against the yen and a 2-day high of 0.9382 against the Australian dollar, from yesterday’s closing quotes of 92.41 and 0.9428, respectively. If the loonie extends its uptrend, it is likely to find resistance around 95.00 against the yen and 0.93 against the aussie.
Against the euro, the loonie edged up to 1.4606 from yesterday’s closing value of 1.4641. The loonie may test resistance near the 1.43 region.
Meanwhile, the loonie fell to 1.2882 against the U.S. dollar, from an early high of 1.2848 and held steady thereafter.
Also, the safe-haven yen fell against its major rivals amid risk appetite.
The yen fell to a 4-day low of 184.38 against the pound and a 2-day low of 119.23 against the U.S. dollar, from yesterday’s closing quotes of 183.70 and 118.87, respectively. If the yen extends its downtrend, it is likely to find support around 188.00 against the pound and 121.00 against the greenback,
The yen edged down to 135.51 against the euro and 125.27 against the Swiss franc, from yesterday’s closing quotes of 135.33 and 125.07, respectively. The yen may test support near 138.00 against the euro and 127.00 against the franc.
Looking ahead, at 2:35 am ET in the pre-European session, Bank of Japan Governor Haruhiko Kuroda is expected to speak at the the annual meeting of credit cooperatives, in Tokyo.
In the European session, Eurozone CPI data for September and trade balance for August are due to be released.
At 6:30 am ET, Bank of England’s Monetary policy Committee member Kristin Forbes will deliver a speech at business summit on “Growing your business in a global economy” in Brighton, England.
An hour later, European Central Bank member Benoit Couere is expected to speak at an interparliamentary conference “Towards a Progressive Europe” organized by German social democratic MPs in Berlin.
In the New York session, Canada manufacturing sales data for August, U.S. industrial production, U.S. weekly rig count report and the University of Michigan’s preliminary U.S. consumer sentiment index for October are due.
The material has been provided by InstaForex Company – www.instaforex.com