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Forex - USD/CAD hits daily high after weak Canadian CPI data

Published 12/21/2010, 09:25 AM
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EUR/CAD
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Investing.com- The U.S. dollar rose to a daily high against its Canadian counterpert on Tuesday, after official data showed that Canadian consumer price inflation rose less-than-expected in November.

USD/CAD hit 1.0207 European afternoon trade, the daily high; the pair subsequently consolidated at 1.0187, gaining 0.19%.

The pair was likely to find support at 1.0101, Monday’s low and resistance at 1.0270, the high of December 1.

Statistics Canada said CPI, which includes more volatile food and energy costs, rose less-than-expected, increasing by 0.1% in November, after rising by 0.4% in October. Analysts had expected CPI to rise by 0.3% in November.

Year-on-year, CPI rose by 2.0% in November, less than the 2.3% expected increase.

Core consumer prices, which excludes the eight most volatile items, posted a flat reading, coming in under the expected 0.2% increase.

The loonie was also down against the euro, with EUR/CAD climbing 0.41% to hit 1.3408.

Also Tuesday, official data showed that Canadian retail sales rose more-than-expected in October, rising for the third consecutive month.

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