The Canadian dollar retraced Thursday as the energy prices traded lower ahead of the peak oil production Doha gel during the weekend. Yesterday, the Bank of Canada (BoC) kept rates unchanged at 0.50 percent and issued words of caution. The BoC has not made dovish comments, and generally described the risk factors to which the Canadian economy. The central bank will be held on the sidelines until the effects of the federal budget announced last month is beginning to have an economic impact.
New housing prices in Canada rose 0.2% in February from the previous month. Rising real estate prices in major markets beat expectations as Toronto and Vancouver took a big jump in spite of cities dependent energy falling.
U.S. economic indicators have disappointed this week written OANDA'S MP Kenny Fisher:
inflation indicators in the US continue to point to a fresh inflation picture. CPI and Core CPI, key gauge of consumer inflation, posted small gains of 0.1%. Basic press CPI was particularly disappointing, coming after two consecutive increases of 0.3%. Figures from the low inflation, it is difficult to make a case for higher interest rates in the first half of 2016 and reinforces the status quo position Janet Yellen and his followers. Deutsche Bank analyst Brett Ryan sums up the soft image of US inflation, noting that "we are still importing deflation from other parts of the world." There was much better news on the employment front, requests unemployment fell to 253,000, the lowest weekly reading since March 1973. This version is another confirmation of a solid US labor market.
US retail sales reports , a key measure of consumer spending, disappointed with Mars. 0.2% improved core retail sales, but below the forecast of 0.4%. retail sales surprised with a decrease of 0, 3% shy of the estimate of a 0.1% gain. It marked the second consecutive decline in the indicator. consumer spending is the biggest part of the economy, so these figures could cause problems at a time when the export sector remains weak due to weak global demand. PPI, a key inflation indicator in the manufacturing sector continues to struggle, posting a third decline in four months. The index fell 0.1%, far estimates of a 0.3% gain.
USD / CAD appreciated by 0.3 percent over the past 24 hours. The pair traded near the 1.29 level before price at 1.2854. The price of Brent dropped by 0.20 percent and WTI was flat gives little support to the Canadian dollar. The USD rose after the slow global fears disappeared and increased employment data the impressive recovery in this important pillar.
Oil had a volatile session as supply numbers continue to press down while next summit Doha oil prices of the Organization of petroleum exporting countries (OPEC) and Russia has kept prices from falling further. The International Energy Agency said earlier today that the gel will not have a lasting impact on prices as supplies are still large. Saudi Arabia has rejected the possibility of a cut, and even reduces the chances of a gel agreement if some OPEC members do not limit their production. Given the lack of trust between producers an agreement will be a good sign, but will play out as described by the IEA.
The CAD will close the week by releasing data on manufacturing sales on Friday. Forecasts predict a 1.4 percent contraction that even a weaker currency was not able to build a consistent positive trend for manufacturing and some reaction is expected after the record set in the last month of 2.3 percent growth in January.
CAD events to watch this week:
Friday, April 15
8:30 CAD manufacturing sales m / m
10:00 am USD Consumer Sentiment prelim UoM
* All times EDT
for a full list of events planned for the visit of the foreign exchange market the economic calendar MarketPulse
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