Canadian Dollar Appreciates On Strong Inflation Data
January 19 2022 - 5:04AM
RTTF2
The Canadian dollar spiked up against its most major
counterparts in the European session on Wednesday, following a data
showing an acceleration in the nation's annual inflation for the
month of December.
Data from Statistics Canada showed that the consumer price index
rose 4.8 percent on a year-over-year basis in December, up from a
4.7 percent gain in November.
Core consumer prices increased by 4.0 percent on year, after
climbing by 3.6 percent in November.
The CPI grew 0.3 on a seasonally adjusted monthly basis in
December, the same rate as seen in the previous month.
Core CPI, excluding food and energy, grew 0.4 percent in
December, following a 0.1 percent rise last month.
The loonie edged higher to 91.94 against the yen, from a low of
91.28 seen at 2 am ET. If the loonie continues its rise, 94.00 is
possibly seen as its next resistance level.
The loonie jumped to nearly a 5-year high of 1.4129 against the
euro and more than a 2-month high of 1.2450 against the greenback,
off its early lows of 1.4197 and 1.2525, respectively. The loonie
is seen finding resistance around 1.40 against the euro and 1.22
against the greenback.
In contrast, the loonie weakened to a 2-day low of 0.9044
against the aussie, following a 1-1/2-month high of 0.8976 seen in
the Asian session. Next key support for the loonie is possibly seen
around the 0.92 level.
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