It’s all positive news for the C$: inflation is up to 2.4% and core inflation to 1.8%. Month over month, figures came out as expected: CPI at +0.1% and core CPI at -0.1%. Wholesales sales jumped by 2.2%. All figures are above expectations. Canada was expected to report a m/m rise of 0.1% in headline CPI and a slide of 0.1% in core CPI for the month of June. Year over year, CPI carried expectations of remaining unchanged at 2.3% and core CPI at 1.7%. Canadian Wholesale Sales were predicted to remain flat in June after a rise of 0.5% in May.
USD/CAD traded around 1.0750 towards the release. It now fell to 1.0715 and the move continues.
The C$ traded choppily after the Canadian rate decision, but didn’t go anywhere fast. The Bank of Canada is in neutral mode and waiting to see the next direction of the Canadian economy before acting.
The round level of 1.07 provides some support. The next line is 1.0660. For more, see the Canadian dollar prediction.
Here is the chart:Get the 5 most predictable currency pairs