The Canadian dollar rose against the US dollar and and reached the highest closing price since April versus the Japanese yen as Canada’s inflation was steady and the market sentiment was good. The Canadian currency fell against the euro.
Canada maintained its monthly inflation growth at 0.2 percent in October. The core component of the Consumer Price Index rose 0.3 percent in the last month from the month before. Analysts predict that the report next week will show an expansion of Canada’s economy that would follow the decline in August.
This week was marked by a good sentiment on the Forex market and Friday did not change that. It was somewhat puzzling that traders looked favorably on the usual “can-kicking” of the European policy makers. Anyway, the optimistic traders’ mood allowed the loonie to gain, though the euro outperformed the Canadian currency.
USD/CAD fell from 0.9969 to close at 0.9918 yesterday, the lowest closing price since November 6. CAD/JPY climbed from 82.63 to 83.07 — the highest close since April 4. Meanwhile, EUR/CAD rallied from 1.2843 to 1.2870 and its daily maximum of 1.2896 was the highest since November 2.
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