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Forex - USD/CAD Erases Gains in Early Trade

Published 01/12/2018, 09:30 AM
© Reuters.  Greenback pulls back from session highs vs. loonie
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Investing.com - The U.S. dollar turned lower against its Canadian counterpart on Friday, erasing earlier gains posted after the release of mostly positive U.S. economic reports, even as a decline in oil prices dampened demand for the commodity-related Canadian currency.

USD/CAD was down 0.11% at 1.2506 by 09:30 a.m. ET (13:30 GMT), off a session high of 1.2556.

The U.S. Commerce Department reported on Thursday that retail sales rose 0.4% in December, in line with expectations. Core retail sales, which exclude automobile sales, increased by 0.4%, also in line with expectations.

A separate report showed that that the U.S. consumer price index rose 0.1% in December, below forecasts for a 0.2% increase. Year-over-year, consumer prices increased 2.1% last month.

Core CPI, which excludes food and energy costs, rose 0.3% last month, above expectations for a 0.2% gain.

Meanwhile, the Canadian dollar was pressured lower by a decline in oil prices on Friday, although losses were expected to be limited.

The loonie was lower against the euro, with EUR/CAD up 0.86% at 1.5191.

The single currency remained broadly supported after the European Central Bank said it could consider a gradual shift in guidance from early 2018, according to the minutes of its December meeting.

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