🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

C$ clings to weekly gain as consumer demand shows resilience

Published 02/18/2022, 09:33 AM
Updated 02/18/2022, 09:35 AM
© Reuters. FILE PHOTO: A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto, January 23, 2015.    REUTERS/Mark Blinch/File Photo

By Fergal Smith

TORONTO (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Friday as investors weighed diplomatic efforts to avoid a Russian invasion of Ukraine and preliminary domestic data showing that retail sales climbed in January.

Canadian retail sales rose 2.4% in January from December, a flash estimate from Statistics Canada showed, following on a 1.8% decline in December as consumers stayed home amid concerns over the Omicron coronavirus variant.

"Consumer demand appears to be resilient, though persistently strong inflation is eroding purchasing power," Shelly Kaushik, an economist at BMO Capital Markets, said in a note.

U.S. stock index futures seesawed after news that the U.S. Secretary of State Antony Blinken agreed to a meeting with Russia's foreign minister Sergei Lavrov, raising the prospect of ending the standoff over Ukraine.

The price of oil, one of Canada's major exports, extended losses and was headed for a weekly fall as the prospect of increased Iranian oil exports eclipsed fears of potential supply disruption resulting from the Russia-Ukraine crisis.

U.S. crude prices fell 2.1% to $89.8 a barrel, while the Canadian dollar was nearly unchanged at 1.2706 to the greenback, or 78.70 U.S. cents.

The currency traded in a range of 1.2675 to 1.2717. For the week, it was on track to gain 0.2%.

© Reuters. FILE PHOTO: A Canadian dollar coin, commonly known as the

Meanwhile, Canadian police started arresting protesters as part of an operation to end a three-week blockade of Ottawa by hundreds of truck drivers that crippled the capital and prompted Prime Minister Justin Trudeau to assume emergency powers.

The Canadian yield curve flattened, with short-term rates barely moving and the 10-year rate easing 1.7 basis points to 1.899%. On Wednesday, it touched a three-year high at 1.995%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.