Daily Afternoon Report 22/05/2015
The U.S. dollar rose to one-month highs against its Canadian counterpart on Friday, after mostly positive U.S. inflation data and ahead of a speech by Federal Reserve Chair Janet Yellen, while mixed Canadian data weighed on the local currency.
In a report, the Department of Labor said that the U.S. consumer price index rose 0.1% in April, in line with expectations and after a 0.2% gain the previous month. Year-on-year, consumer prices slipped 0.2% last month, however, compared to expectations for a 0.1% downtick, following a 0.1% fall in March. The consumer price index, which excludes food and energy, rose 0.3% in April, exceeding expectations for a 0.2% increase, after a 0.2% gain the previous month.
The report came after a string of downbeat U.S. data on Thursday had fuelled fresh uncertainty over the strength of the economy.
Meanwhile, Statistics Canada reported that retail sales increased by 0.7% in March, beating expectations for a 0.3% rise. Core retail sales, which exclude automobiles, rose 0.5% in March, compared to expectations for a 0.4% uptick.
A separate report showed that Canada’s consumer prices slipped 0.1% in April, confounding expectations for a 0.1% rise.
Year-on-year, consumer prices gained 0.8% last month, disappointing expectations for an increase of 1.0%.