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Forex - USD/CAD climbs after mixed Canadian data

Published 06/19/2015, 09:30 AM
Firmer greenback rises against loonie in early trade
USD/CAD
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EUR/CAD
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Investing.com - The U.S. dollar climbed against its Canadian counterpart on Friday, after mixed Canadian economic reports and as markets digested the Federal Reserve's latest policy comments, which had sent the greenback broadly lower.

USD/CAD hit 1.2291 during early U.S. trade, the session high; the pair subsequently consolidated at 1.2269, gaining 0.39%.

The pair was likely to find support at 1.2123, Thursday's low and a one-month low and resistance at 1.2348, the high of June 16.

Statistics Canada reported on Friday that retail sales slipped 0.1% in April, confounding expectations for a 0.7% rise, while core retail sales, which exclude automobiles, fell 0.6% compared to expectations for a 0.3% gain.

A separate report showed that Canada's consumer prices rose 0.6% in May, beating expectations for an uptick of 0.5%. Year-on-year, consumer prices increased by 0.9% last month.

Core consumer prices, which exclude the eight most volatile items, ticked up 0.4% in May, compared to expectations for a 0.3% gain.

Meanwhile, the greenback bounced back after falling sharply when the Fed lowered both its U.S. growth forecast and its interest-rate projections at its policy meeting on Wednesday, prompting investors to push back expectations on the timing of an initial rate hike.

The loonie lower against the euro, with EUR/CAD edging up 0.14% to 1.3906.

The euro remained under pressure as concerns over Greece's future in the euro zone persisted after a meeting between Greek and euro area officials broke down on Thursday.

The current bailout for Greece expires on 30 June when Athens is also due to repay the International Monetary Fund around €1.6 billion.

IMF Chief Christine Lagarde said if the payment is not made on time, Greece will be declared to be in default and would disqualify itself from receiving any further IMF funds.

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