By Commodity News Service Canada
WINNIPEG, June 17 (CNS Canada) The Canadian dollar strengthened against its US counterpart Friday morning, supported by a rise in the Consumer Price Index (CPI).
The CPI rose 1.5 per cent in the 12 months to May, after increasing 1.7 per cent in April, according to Statistics Canada. Excluding gasoline, the CPI was up 1.9 per cent year over year in May, following a 2 per cent gain in April.
Crude oil also rose on Friday for the first time in seven days, which helped in the strengthening of the loonie. However, trading remains volatile with less than a week until Britain votes on whether or not to leave the European Union (Brexit).
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Investors have tread cautiously during the waiting period for the referendum on June 23, which has wreaked havoc on the global market as many worry about economic growth.
Recent surveys have suggested majority in favour of a Brexit, however the murder of British politian, Jo Cox, could rally sentiment supporting Britain to remain in the EU, analysts say, as this was something she advocated for.
At 9:06 CDT Friday, the Canadian dollar was at US$0.7786 or US$=C$1.2961, which compares with Thursday’s North American close of US$0.7715 or US$1=C$1.2844.
The TSX was up 57.93 points, or 0.42 per cent, at 9:06 CDT Friday morning to sit at 13,940.34.
