The Canadian dollar strengthened off the back of growing corporate profit data that showed a steady growth in economic health since last quarter’s reading in November. The Canadian economy still has a long way to go, however, to recoup the losses it has seen in this area since the highs of August 2015, where the figure stood at a staggering 12.9% as opposed to today’s reading of -3.1%.
Tokyo’s Consumer Price Index (CPI) data was released overnight, with analysts forecasting slight growth from -0.1% to 0.0%. This is likely to have a positive effect on the currency. Given that Tokyo is Japan’s largest city and an economic powerhouse in its own right, this set of data overshadows Japan’s National CPI data, also released overnight. A slight decline from previous figures was predicted, but should this happen, it is unlikely to have any great effect on the currency, especially if the Tokyo figures remain positive.
Earlier this morning the Bank of Japan released its core CPI figures, with many analysts predicting a slight contraction from previous figures. Eyes should remain on the G20 meeting in Shanghai as this is likely to reveal the thoughts amongst leading bankers and economists and will more than likely have repercussions across a number of currencies.
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