Loonie flat amid rising inflation, mixed commodity prices
The Canadian dollar was flat Friday while the latest inflation data showed rising price pressures.
The loonie moved away from the lows of the morning and was unchanged at 91.8 cents US as Statistics Canada reported that the consumer price index for April rose at an annualized rate of two per cent, in line with expectations and up from 1.5 per cent the previous month.
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On a monthly basis, the CPI was up 0.3 per cent, lower than the 0.4 per cent reading that had been forecast.
Traders also looked ahead to the release of new-home sales data for April. Economists expect sales rebounded in the month, with the annual rate rising to 429,000 from 384,000 in March. But that is still below levels of 446,000 a year ago.
Figures released Thursday showed existing-home sales rose 1.3 per cent in April, the fastest pace since December.
Elsewhere on the economic front, a closely watched survey shows that German business confidence has dipped, with companies less optimistic about both their current situation and the outlook for the next six months. The Ifo institute said Friday that its confidence index, a key indicator for Europe's biggest economy, slipped to 110.4 points this month from 111.2 in April.
Standard & Poor's rating agency has upgraded Spain's sovereign credit grade a notch to BBB, the third agency to do so in recent months and a further sign the country is turning the corner after five years of economic turmoil. The agency cited improved economic prospects and praising the conservative government's structural and labour reforms since 2010.
On the commodity markets, July crude in New York gained 30 cents to US$104.04 a barrel, June bullion faded $6.50 to US$1,288.50 an ounce while July copper rose two cents to US$3.17 a pound.
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