The Canadian dollar strengthened to a multi-day high versus the U.S. dollar in European deals on Friday, erasing its early losses, as the nation’s retail sales improved more-than-forecast in June.
Data from Statistics Canada showed that the nation’s retail sales increased 0.6 percent on a monthly basis to C$43.2 billion in June.
This was higher than the expected reading of 0.2 percent, following a 1.0 percent rise a month earlier.
Core retail sales grew by 0.8 percent – also topping forecasts for 0.6 percent, after recording a 0.9 percent rise in the previous month.
Separate data showed that Canada’s consumer price index increased 1.3 percent on year in July, matching expectations. Economists were forecasting a reading of 1.0 percent.
On a monthly basis, the CPI edged up 0.1 percent, in line with what the economists had expected. In June, the consumer prices rose 0.2 percent.
The loonie hit a 2-day high of 1.3058 against the greenback, coming off from an early low of 1.3113. The loonie is likely to challenge resistance around the 1.29 mark.
The loonie recovered to 93.88 against the yen, reversing from its previous 6-1/2-month low of 93.54. The next possible resistance for the loonie-yen pair may be located around the 94.5 level.
The material has been provided by InstaForex Company – www.instaforex.com