By Commodity News Service Canada
Winnipeg, January 23 – The Canadian dollar was little changed at midday Friday, consolidating following recent sharp declines, analysts said.
The currency was still undermined by signs of slow global economic growth, analysts said. The Bank of Canada surprisingly cut interest rates earlier this week, while the European Central Bank announced a new quantitative easing program.
At 11:39 CST Friday, the Canadian dollar was trading at US$0.8065 or US$1=C$1.2399, which compares with Thursday’s North American close of US$0.8062 or US$1=C$1.2404.
Read Also
Canadian Financial Close: Loonie up as U.S. markets tumble
Glacier FarmMedia — The Canadian dollar regained some ground on Friday as its United States counterpart struggled. The loonie closed…
Continued weakness in the crude oil market also weighed on the Canadian currency, as did disappointing Canadian consumer price index (CPI) data. According to Statistics Canada, the CPI rose 1.5 per cent in the 12 months to December, following a 2.0 per cent jump in November.
On the other side, sentiment that the loonie fell too far, too fast, was supportive. The Canadian currency dropped nearly three cents relative to the US dollar this week.
Positive Canadian retail sales data was also bullish. StatsCan said retail sales were up 0.4 per cent to C$43 billion in November, while expectations called for a decline.
The Toronto Stock Exchange was up 61.64 points, or 0.42%, at 11:39 CST Friday, to sit at 14,825.62.
