Stock Groups

C$ clings to weekly gain as consumer demand shows resilience -Breaking


© Reuters. FILEPHOTO: This illustration shot was taken in Toronto, January 23, 2015. It shows a Canadian Dollar coin also known as the Loonie. REUTERS/Mark Blinch/File Photograph

Fergal Smith

TORONTO (Reuters] – On Friday, the Canadian dollar was unchanged against its U.S. counterpart as investors weighed diplomatic attempts to prevent a Russian invasion and preliminary domestic data that showed retail sales rose in January.

According to Statistics Canada, Canadian retail sales increased 2.4% from December. This was a result of a 1.8% drop in December.

Shelly Kaushik from BMO Capital Markets said that while consumer demand is resilient, persistently strong inflation has eroded purchasing power.

U.S. stock market futures shook after U.S. Secretary-of State Antony Blinken said he was open to meeting Sergei Lavrov from Russia, raising hope of an end to standoff with Ukraine.

Canada’s largest export was oil. The prospect of Iranian oil exports increased the price of oil and led to a weeklong fall. This is despite fears that there could be disruption in supply due to the Russia-Ukraine conflict.

Prices fell by 2.1% to $89.8 per barrel. The Canadian dollar was almost unchanged at 1.2706 against the greenback (or 78.70 U.S.cents).

It traded between 1.2675 and 1.2717. The currency gained 0.2% during the week.

Canadian police began arresting protestors as part of an operation that ended a blockade of Ottawa for three weeks by truck drivers. This had crippled Ottawa and forced Prime Minister Justin Trudeau into emergency power.

Canadian yield curve has remained flat with the short-term rate barely changing and the 10-year rate falling 1.7 basis points, to 1.899%. It reached a 3-year peak of 1.995% on Wednesday.

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs include stocks, indexes and futures. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media does not accept any liability for trade losses that you may incur due to the use of these data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.