The Canadian dollar on Friday dropped toward its lowest value in almost two years against the world's reserve currency following the release of weaker-than-anticipated economic data, Bloomberg reports.
For a second consecutive month, the core inflation rate of Canada climbed at a pace of 1.1 percent while Bloomberg-polled economists forecast the metric to climb at 1.2 percent. April retail sales also did not climb as high as anticipated, prompting the Canadian dollar to dive toward its biggest weekly losses since September 2011.
"Retail sales were unimpressive," states a Friday email to Bloomberg from fixed-income strategies director Adrian Miller with GMP Securities LLC in New York. "I see nothing in the recent Canadian data that suggests anything other than sub-2 percent growth in 2013 as support from business investments and consumer spending fail to materialize as some have predicted or hoped."
Those losses occurred very rapidly after Statistics Canada released the economic data from its offices in Ottawa.
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.