The Canadian dollar was the biggest loser against the US currency, which ended the week with an increase of 0.39% against a basket of six major currencies. The US currency was supported by the speech of San Francisco’s Fed president John Williams, that the main interest rate must be increased until the end of the year, adding that one increase of interest rates this year and several more in 2017 will meet the needs of the US economy.
The Canadian currency lost 0.77% of its value on Friday. Besides optimism, which gripped the market participants on lifting interest rates in the US also the weaker growth in consumer prices in Canada put under pressure the Canadian dollar. The inflation in September reached 1.3% in the expected growth of 1.5% yoy. The consumer prices rose 0.1% MoM, while the expectations of analysts were for growth of 0.2%. The retail sales also disappointed investors with a growth of 0.1%, against the expected growth of 0.3%.
Early today the pair USD/CAD is trading at a level of 1.3328.
The Canadian dollar was not enough supported even by the growth in oil prices on Friday, which rose 0.83% to 50.93 USD per barrel. Over the weekend was released an information that Russia and Saudi Arabia have signed a memorandum of cooperation in the energy sector. This was confirmed later by the Minister of Energy of Saudi Arabia Khalid Al Falih. He said that the cycle of lowering the price of black gold is near its end. Market conditions in terms of supply and demand began to improve.