Although Canada’s inflation data revealed a rebound in consumer prices in March, yesterday’s Bank of Canada rate decision left the ‘Loonie’ floundering and saw the Euro consolidate gains against its North American rival on Friday.
The Euro experienced minimal movement on Friday as a report showed that producer prices in German unexpectedly declined.
The common currency was trading in a fairly narrow range against several of its currency counterparts but was able to retain yesterday’s gain against the Canadian Dollar.
The ‘Loonie’ posted widespread declines in the aftermath of the Bank of Canada’s rate decision and remained softer after Statistics Canada published its domestic inflation report.
The data showed that the nation’s consumer price index increased by 1.5 per cent in March after dipping to 1.1 per cent the previous month.
Meanwhile, the core consumer price index advanced by 1.3 per cent, up from a 1.2 per cent climb the previous month.
According to one industry expert Canada ‘experienced some cost inflation in meat and produce, mostly due to foreign exchange, which we were not able to completely pass through at retail because of the competitive market.’
Yesterday Bank of Canada Governor Steven Poloz asserted that the core inflation rate wouldn’t hit the central bank’s 2 per cent target until the beginning of 2016.
The Canadian Dollar climbed by a modest 0.2 per cent against its US counterpart on Friday but was little-changed against the Euro.
A dearth of influential economic reports for Canada may restrain ‘Loonie’ movement next week, although fluctuations in the EUR/CAD pairing could be inspired by the Eurozone’s consumer confidence, manufacturing and services data.
Elsewhere, investors will be focusing on the publication of minutes from the Bank of England’s latest policy meeting on Wednesday and US durable goods orders figures.
Euro (EUR) Exchange Rates
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Currency, ,Currency,Rate ,
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Euro,
Euro,
Euro,
Euro,
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