Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Canadian dollar ends weekly win streak as U.S. inflation jumps

05/28/2021 | 04:03pm EDT
FILE PHOTO: A Canadian dollar coin, commonly known as the

TORONTO (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Friday as oil prices fell and data showed U.S. consumer inflation heating up in April, with the loonie ending its longest streak of weekly gains since 2016.

The loonie was trading 0.1% lower at 1.2078 to the greenback, or 82.80 U.S. cents, having traded in a range of 1.2063 to 1.2120. It was also down 0.1% for the week, after having climbed for eight straight weeks.

"We've had a really strong run in the Canadian dollar in the last one or two months," said Rahim Madhavji, president at KnightsbridgeFX.com. "It's hard to see what the next catalyst for the loonie is going to be going forward."

Speculators have cut their bullish bets on the Canadian dollar for the first time in six weeks, data from the U.S. Commodity Futures Trading Commission showed. As of May 25, net long positions had dipped to 44,811 contracts from 46,112 in the prior week.

U.S. consumer prices accelerated in the year to April, with a measure of underlying inflation blowing past the Federal Reserve's 2% target.

The data is "potentially going to put pressure on the Fed to act sooner rather than later" to tighten policy, Madhavji said.

Canadian GDP data for the first quarter is due on Tuesday, with economists expecting an annualized increase of 7%. The data could help guide expectations for the Bank of Canada policy outlook.

The BoC is likely to cut its bond-buying program again this year, possibly as soon as July, as provinces ease curbs to contain the coronavirus pandemic and inflation pressures build, analysts said.

The price of oil, one of Canada's major exports, settled 0.8% lower at $66.32 a barrel, giving back some of this week's rally, while Canada's 10-year yield was nearly unchanged at 1.489%.

(Reporting by Fergal Smith; Editing by Andrea Ricci and Will Dunham)

By Fergal Smith


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
EURO / US DOLLAR (EUR/USD) 0.35% 1.18862 Delayed Quote.-3.22%
LONDON BRENT OIL 1.07% 75.55 Delayed Quote.44.56%
Latest news "Economy & Forex"
01:38pScarlett Johansson sues Disney over 'Black Widow' streaming release - WSJ
RE
01:35pTelefonica looking at further acquisitions in Brazil amid buying flurry
RE
01:32pTREVOR MILTON : U.S. charges Nikola founder Trevor Milton with lying to investors
RE
01:29pCoffee, cane and orange crops at risk as temperatures plunge in Brazil
RE
01:24pFiscal stimulus, vaccinations lift U.S. economy above pre-pandemic level
RE
01:21pSpanish court drops investigation into Repsol chairman in alleged spying case
RE
01:20pFiscal stimulus, vaccinations lift U.S. economy above pre-pandemic level
RE
01:16pMorocco trade deficit widens over first half of year
RE
01:15pExclusive - AstraZeneca exploring options for COVID-19 vaccine business - executive
RE
01:12pJOHN BURNS : America's local landlords. Moving in: Big investors
RE
Latest news "Economy & Forex"