CAD Trading

Lower core inflation weighs on Canadian dollar.

A busy week took the pound up two cents, down four cents and nearly all the way back up to the top again.

The Canadian data offered no compelling reason for investors in the CFDs, forex or financial spread betting markets to buy the Loonie.

Foreign investment in Canadian securities fell by more than 75% in June and outgoing investment fell below zero. Manufacturing shipments went up by 0.1% in June; technically an increase but only just. The figures that hurt the Canadian dollar most were those for CPI inflation in July, which came out on Friday.

Annual headline inflation rose to 1.8% from 1.0%. That was fair enough, but the Bank of Canada forms its monetary policy according to its ‘core’ CPI. That went down from 1.7% to 1.6%, reducing the chance of higher Canadian interest rates in anything like a hurry.

ZAR Trading

Vuvuzelas boost South African retail sales.

A low-key week for South African economic data brought just one helpful statistic. Retail sales went up by 7.4% in real terms in the year to June. It was an improvement on the 4.5% a month earlier.

The football world cup will have had a lot to do with the improvement and good figures are expected in a month’s time for the same reason but that positive effect will fade over time.

The rand performed in line with its peer group, keeping pace with the Australian and New Zealand dollars.

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