Economic data released by Statistics Canada indicated the pace of inflation has dropped, which bolsters the idea that the Canadian economy is pulling away from reaching full capacity. The loonie was driving toward a sixth consecutive week of gains against the U.S. dollar, matching its best in about 24 months. But losses to the currency on Friday cut into the weekly gains.
Declines suffered by the monetary unit of Canada gained momentum following the report's release because "today's data suggest little near-term inflationary pressures in the domestic economy, another reason for the Bank of Canada to keep rates on hold," economist Emanuella Enenajor with CIBC World Markets told The Canadian Press.
The commodity-linked monetary unit also lost value on Friday as a result of declines to crude oil, which is the top commodity of the natural-resources-rich nation.
Losses to the Canadian dollar come one day after it touched its highest value in three-plus months against its southerly rival, according to The Canadian Press.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.