During the European session on Tuesday, the Canadian dollar rose against other major opponents as a report indicated that Canada’s consumer price rose 1.4% in 12 months. The loonie recouped recent losses against the U.S. dollar and recovered from a 4-day low against the yen. Meanwhile, the loonie rose to an 8-day high against the euro and edged higher against the aussie.
From Canada, the nation’s consumer prices rose 1.4% in the 12 months to May, following a 1.8% increase in April, according to data from Statistics Canada released today.
Overall, energy prices rose 6.2% between May 2009 and May 2010, following a 9.8% increase during the 12-month period to April. Excluding energy, the Consumer Price Index (CPI) rose 1.0% in May, after increasing 1.1% in April.
The Canadian dollar recovered recent losses against the U.S. dollar during European session on Tuesday. Rising from a low of 1.0249 hit at 6:00 am ET, the Canadian dollar rose to 1.0209 against the greenback at 7:55 am ET. As of now, the loonie is worth 1.0227 against the greenback, compared to 1.0245 hit at yesterday’s close.
Extending its uptrend, the Canadian dollar advanced to an 8-day high of 1.2526 against the euro at 7:55 am ET. As of now, the loonie is worth 1.2543 against the euro, compared to yesterday’s close of 1.2619.
In economic news, the euro area current account recorded a seasonally adjusted EUR 5.1 billion deficit in April compared to a surplus of EUR 1.5 billion in March, data from the European Central Bank showed today. On an unadjusted basis, the deficit totaled EUR 6.9 billion versus March’s EUR 1.3 billion surplus.
German business climate unexpectedly rebounded in June a separate report showed today. The business climate index climbed to 101.8 in June from 101.5 in May, the Munich-based Ifo Institute for Economic Research said. Economists had forecast slight decrease to 101.2
The Canadian dollar continued to creep higher against the Australian currency during Tuesday’s European deals. Presently, the loonie is worth 0.8954 against the greenback, compared to yesterday’s close of 0.8982.
The Canadian dollar that fell to a 4-day low of 88.38 against the yen at 5:15 am ET Tuesday reversed its direction thereafter. The loonie is now trading at 88.66 against the yen, compared to yesterday’s closing quote of 88.93.
Looking ahead, the U.S. house price index for April and the existing home sales for May are slated for release in the upcoming hours.
The Federal Reserve Open Market Committee is scheduled to meet on Tuesday for a 2-day meeting. The FOMC is due to make an announcement regarding its near-term direction of monetary policy at 2:15 pm ET on Wednesday.