CAD Boosted on Strong Canadian Retail Sales and Consumer Price Data
The Canadian Dollar received a boost on Friday, closing 0.41% higher against a resurgent US dollar on the back of strong Canadian Retail Sales and Consumer Price data, as well as a late gain in Crude Oil.
Despite strong support for the US Dollar, which saw the greenback close at multi-week highs in most major currency pairings, the Loonie held firm against its US counterpart following the release of data which surpassed market expectations.
Crude oil closed higher on Friday, boosted by a falling rig count which has now hit a fresh all-time low. Crude closed 1.27% higher, making it a third consecutive weekly gain as risk sentiment improved ahead of a key week of central bank meetings. The rise in oil boosted oil-linked currencies such as the Canadian Dollar.
Core Retail Sales
In a report issued by Statistics Canada, official data showed on Friday that core retail sales in Canada increased unexpectedly in March. Canadian core retail sales increased to a seasonally adjusted 0.2%, from the 1.3% recorded in February whose figure was revised up from 1.2%. The surprise increase came after analysts had been expecting Canadian core retail sales to decline -0.5% in March.
Canadian Retail Sales
In a report released by Statistics Canada on Friday, official data showed that Canadian retail sales rose unexpectedly in March. Retail sales in Canada increased to 0.4%, from the 2.0% recorded in February whose figure was revised down from 2.1%. The unexpected increase came after analysts had been expecting Canadian retail sales to decline -0.8% in March.
Consumer price inflation
In a separate report issued by Statistics Canada, official data revealed on Friday that Canadian consumer price inflation increased, on a monthly basis and before seasonal adjustment, to 0.6% from the 0.2% recorded in February. The increase was per analysts expectations.
Canadian core consumer price inflation
Finally, Statistics Canada reported on Friday that Canadian core consumer price inflation unexpectedly increased last month. Canadian core CPI increased to a seasonally adjusted 0.7%, up from the 0.5% recorded in February. The large leap in core CPI came after analysts had been expecting a 0.3% increase in March.
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