- CA CPI rises by 0.3% vs. in April vs. 0.6% in March
- CA core CPI up by 0.2% in April vs. 0.3% in March
- CA annualized CPI reaches the BOC’s 2.0% target due to energy prices
- US new home sales clocks in at 433K vs. 425K expected
- S&P upgrades Spain’s credit rating from BBB- to BBB with stable outlook
- Fitch upgrades Greece’s rating from B- to B with stable outlook
The dollar ended the U.S. trading session with mixed results against its major counterparts after showing strength in the London session.
EUR/USD closed 20 pips higher than its intraday low at 1.3615 while GBP/USD also shot up from its 1.6813 intraday low and closed at 1.6839. In contrast, the dollar gained ground against its low-yielding counterparts.
USD/JPY spiked down to the 101.50 area before it closed just below 102.00 while USD/CHF also recovered from a 30-pip spike induced by a marginally better-than-expected U.S. new home sales report.
The Loonie also got the investors’ attention as Canada’s annualized inflation rate hit the Bank of Canada’s (BOC) 2% target for the first time in two years. Higher energy prices might have temporarily pushed inflation higher, but it also made it trickier for the BOC to cut its interest rates anytime soon. Of course, it also didn’t hurt that oil prices continued to shoot up and actually gained around 2% throughout the week.
USD/CAD encountered resistance at the 1.0900 area and finished at 1.0867 while EUR/CAD also dropped from 1.4864 to 1.4814. GBP/CAD even fell from 1.8366 to 1.8290 while CAD/JPY bounced from 93.48 to 93.76. Yowza!
We don’t have any major reports scheduled during the Asian session. This means that traders could react to the elections held in the euro zone and Ukraine over the weekend. Word around the hood is that anti-austerity parties are winning the European elections while Petro Poroshenko is winning the exit polls over in Ukraine.
Stay at the edge of your seats for market-moving news, traders!
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!